Brazil’s data watchdog blocks World’s biometric payouts

Brazil’s National Data Protection Authority (ANPD) has moved to suspend World’s (formerly Worldcoin) payments of financial incentives for collected biometric data.

The agency opened an investigation into Tools for Humanity, the company behind the project, in November 2024.

Founded in 2019 by Sam Altman and Alex Blania, the firm aims to build a global digital identity and financial network. The World ID protocol verifies a user’s identity by scanning the iris with orbs, paying rewards in WLD tokens.

ANPD concluded that compensation in cryptocurrency may influence a data subject’s consent. Under the rules, permission to process such information, including biometrics, must be granted freely, with full information and for specific purposes.

The agency noted that financial incentives pose particular risks for low-income groups—the sums carry greater weight for them. Moreover, the collected data cannot be deleted, nor can consent be withdrawn, ANPD specialists said.

Following the investigation, the agency imposed preventive measures against Tools for Humanity, effective 25 January.

In December 2023 the project disabled biometric verification for users in Brazil, India and France. World’s activities have drawn the attention of authorities in the UK, Germany, Argentina, Colombia, Singapore and Kenya.

In May 2024 Argentina’s president Javier Milei met with Altman and Blania to discuss Tools for Humanity’s investment in the country. In June Kenya’s prosecutor’s office ordered to close the case against the project.

In a Series C round in May 2023, Tools for Humanity raised $115m. The parties did not comment on a possible valuation. According to Dealroom, the company’s current valuation is in the range of $460m–$690m.

Over the past 24 hours, the WLD token’s price has fallen by almost 10% amid a broader market correction. The coin trades around $1.9—64% below the all-time high set in March 2024 (CoinGecko).

The asset’s market capitalisation is $1.8bn.

In September the company said it had begun testing facial recognition technology for the World App in select locations.

Rivals are not idle    

Blockchain start-up Humanity Protocol secured a fully diluted valuation of $1.1bn after raising $20m in a funding round led by Pantera Capital and Jump Crypto.

? HUGE NEWS ALERT

We are excited to announce @Humanityprot‘s latest funding round at $1.1 billion FDV, co-led by @PanteraCapital and @jump_

This investment represents a vote of confidence in Humanity Protocol’s mission to redefine decentralized identity.

Details ⬇️ pic.twitter.com/kSfP8HgYUX

— Humanity Protocol ?️ (@Humanityprot) January 27, 2025

The company is developing a digital biometric identity system based on palm scanning.

“The protocol lets people prove they are human without disclosing personal data. This helps tackle problems such as bots, fake accounts and online fraud,” explained Humanity Protocol founder and CEO Terence Kwok in an interview with Reuters.

The team expects to unveil the product “in the next few months”. According to the head of the start-up, they are also considering launching their own token.

Kwok echoed industry expectations of a surge in interest in cryptocurrency and blockchain projects following Donald Trump’s return to the US presidency.

“I will be glad to see new innovations that will receive greater support under this administration. A business-friendly environment can accelerate the development of blockchain solutions and attract investment,” he said.

In May 2024 Humanity Protocol closed a $30m funding round, already then stating a $1bn valuation.