Brazil: National Data Protection Authority issued a ruling upholding suspension of financial compensation grants in form of cryptocurrency for iris data collection

Description

National Data Protection Authority issued a ruling upholding suspension of financial compensation grants in form of cryptocurrency for iris data collection

On 11 February 2025, Brazil's National Data Protection Authority (ANPD) rejected an appeal by Tools for Humanity (TFH) and the World Foundation, thereby upholding the suspension of financial compensation in the form of cryptocurrency (WorldCoin - WLD) or any other format for World ID registrations based on iris scans in Brazil. The ANPD determined that the compensation offered for biometric data collection undermines the principle of free consent, violating the General Data Protection Law (LGPD) and posing potential risks to data subjects. TFH's request for a 45-day extension to comply with the suspension was denied, and the company is required to immediately halt the practice, postponing iris collection appointments until a technical solution is implemented. The company is required to demonstrate compliance within 10 business days, while all other obligations from previous decisions remain in effect.

Original source

Scope

Policy Area
Data governance
Policy Instrument
Data protection regulation
Regulated Economic Activity
software provider: other software
Implementation Level
national
Government Branch
executive
Government Body
data protection authority

Complete timeline of this policy change

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2024-11-11
under deliberation

On 11 November 2024, Brazil’s National Data Protection Authority (ANPD) launched an inspection into…

2025-01-24
under investigation

On 24 January 2025, the Brazilian National Data Protection Authority (ANPD) ordered the company “To…

2025-02-11
in force

On 11 February 2025, Brazil's National Data Protection Authority (ANPD) rejected an appeal by Tools…

2025-03-06
in force

On 6 March 2025, Tools for Humanity appealed the National Data Protection Authority (ANPD) ruling, …

2025-03-25
under investigation

On 25 March 2025, the National Data Protection Authority (ANPD) issued Decision No. 18/2025, reject…

2025-05-26
under appeal

On 26 May 2025, Tools for Humanity again appealed the decision of 25 March 2025 rejecting the Tools…

2025-08-06
in force

On 6 August 2025, the Board of Directors of the National Data Protection Authority (ANPD) upheld it…