NAIROBI (CoinChapter.com)— Brazil’s National Data Protection Authority (ANPD) has banned World Network, formerly known as Worldcoin, from offering cryptocurrency as compensation for collecting biometric data. The decision comes amid heightened concerns over data privacy and the ethical implications of incentivizing iris scans.
Regulatory Clampdown on Biometric Data Collection
On Jan. 24, the ANPD ordered Tools for Humanity (TFH), the organization behind World Network, to halt its services in Brazil starting Jan. 25. The order follows an investigation launched in Nov. 2023, shortly after the World ID project debuted in the country.
Brazil bans Worldcoin over biometric data concerns. Source: XThe ANPD concluded that offering cryptocurrency in exchange for biometric data, such as iris scans, could compromise the validity of user consent. Brazilian law mandates that consent for processing sensitive data must be free, informed, and unequivocal. The agency expressed concerns about financial incentives disproportionately influencing individuals in vulnerable situations, potentially leading to coerced consent.
World Network uses a device known as the “orb” to scan individuals’ irises, aiming to create a global digital identity system. Co-founded in 2019 by OpenAI CEO Sam Altman, the project has faced criticism for its handling of sensitive data, particularly regarding the irreversible nature of biometric data collection and its retention practices.
This is not the first time World Network has faced regulatory challenges. In Dec., Germany’s data protection authority directed the company to implement measures aligning with the European Union’s General Data Protection Regulation (GDPR). The directive cited similar concerns regarding the ethical use and storage of biometric data.
Can Worldcoin (WLD) Bounce Back? Analysts Focus on Critical Support Levels
Worldcoin Network’s native token, WLD, dropped over 12% in the past 24 hours, trading at $1.84, according to CoinMarketCap. The token has struggled since its launch in July 2023, losing 83% of its value after peaking at $11.74 in March.
WLD token tanks 12% In 24 hours. Source: CoinMarketCapCrypto analyst The BTC Station highlighted that WLD recently fell below a descending trendline that originated near $4. The token is now testing this trendline as support, a key moment for its price action.
WLD tests trendline support for breakout. Source: XThe analyst suggested the $1.80-$1.90 range could offer a buying opportunity, predicting a potential 5-8x rally if support holds. “You can place your bids at $1.90-$1.80,” the analyst stated, pointing to February’s historical strength for altcoins.
WLD/USD 1-day price chart. Source: TradingViewA bounce from the $1.80-$1.90 range could bring some optimism back to the market, while a breakdown could signal further losses.
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