Brazilian regulator halts World’s biometric data rewards
Date: 2025-01-28 Author: Oliver Abernathy Categories: BUSINESS
In November 2024, the ANPD launched an investigation into Tools for Humanity, the company that runs World. Founded by Sam Altman and Alex Blania in 2019, the project aims to create a global digital identity and finance network. World ID technology uses iris scanning devices called orbs to verify identity and reward users with WLD tokens.
The agency found that cryptocurrency compensation may affect the freedom of consent when providing biometric data. According to the law, such data can only be processed with informed and voluntary consent for clearly defined purposes. The ANPD noted that financial incentives are especially dangerous for vulnerable groups, as the payments have significant value to them. In addition, the collected data cannot be deleted or consent withdrawn.
On January 25, 2025, Tools for Humanity was subject to preventive restrictions. Already in December 2023, World disabled biometric verification in Brazil, India, and France. Similar measures have attracted the interest of regulators in the UK, Germany, Argentina, Colombia, Singapore, and Kenya.
Despite the difficulties, the project continues to attract the attention of investors. In May 2023, Tools for Humanity closed a Series C funding round, raising $115 million. According to Dealroom, the company's valuation ranges from $460 to $690 million. However, over the past 24 hours, the WLD token has lost 10% of its value and is trading at $1.9, which is 64% lower than the peak value in March 2024. The asset's market capitalization is $1.8 billion.
In the fall of 2024, the company began testing facial recognition technology for its World App.
Amid the events around World, Humanity Protocol, a blockchain startup with a valuation of $1.1 billion, is actively promoting its own digital identity system. The startup, backed by Pantera Capital and Jump Crypto, raised $20 million in its latest funding round. Their technology is based on palm scanning and allows for identity verification without disclosing data.
“This solution helps fight bots, fake accounts and fraud,” said the company’s founder Terence Kwok. Humanity Protocol plans to introduce the product in the coming months and is also considering issuing its own token.
Kwok emphasized that Donald Trump’s return to the US presidency could accelerate the development of the blockchain industry due to a favorable business environment.
Earlier, in May 2024, Humanity Protocol had already raised $30 million, announcing a billion-dollar valuation.
