Source: Cointelegraph Original: "{title}"
The Brazilian data protection agency has upheld its decision to restrict cryptocurrency compensation related to the World ID project on the grounds of user privacy.
The Brazilian National Data Protection Authority (ANDP) announced on March 25 that it rejected the appeal filed by World ID developer Tools For Humanity, continuing to prohibit the company from providing economic compensation to users who provided biometric data through iris scans.
The translated version of the announcement stated: "The suspension of economic compensation in cryptocurrency (Worldcoin - WLD) or any other form for any World ID created by collecting iris scans of Brazilian personal data subjects will continue."
Additionally, ANDP stated that if Tools For Humanity resumes data collection activities, the company will face a daily fine of 50,000 Brazilian Reais (approximately $8,800).
As of the time of publication, Cointelegraph has contacted Tools For Humanity for a response but has not yet received a reply.
The verification activities of World ID in Brazil lasted a short time, as ANDP prohibited data collection just a little over two months after its launch. Source: Worldcoin
ANDP's investigation into World (formerly known as Worldcoin) began last November, amid concerns that economic incentives could undermine users' ability to consent to providing sensitive biometric data.
The controversial "World ID" was created with user consent for iris scanning, which generates a unique digital passport that can verify human identity online.
According to Cointelegraph, as of January 25, Tools For Humanity was ordered to cease providing services to the Brazilian public.
Although World ID has violated laws in Brazil, the demand for digital identity verification methods is growing in other markets due to the increase in AI deepfakes and Sybil attacks.
The rise of bots and artificial intelligence is also undermining online discussions on social media platforms like X and Facebook. According to Cointelegraph, up to 15% of accounts on the X platform may be bots.
Furthermore, research from blockchain analysis firm Chainalysis indicates that generative AI is driving cryptocurrency scams to become more rampant, as it can be used to create false identities.
Some companies are attempting to create digital identity solutions without raising privacy concerns and regulatory crackdowns. Earlier this year, Billions Network launched its own digital identity verification platform that does not require biometric data.
The platform is based on a zero-knowledge proof technology known as Circom and has been tested by major financial institutions such as HSBC and Deutsche Bank.
Related: From ICO Hype to AI Utility: The Evolution of Crypto Agents in Web3
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