Brazil’s National Data Protection Authority (ANPD) suspended Tools for Humanity’s operations in the country due to concerns over the influence of financial incentives on user consent. Additionally, Argentina is investigating alleged data-buying activities linked to the project. Meanwhile, Binance’s CZ recently advocated for blockchain-based government spending transparency, and Coinbase CEO Brian Armstrong pointed out the growing focus on crypto under US President Donald Trump’s administration.
World ID Faces Regulatory Pushback
Brazil's National Data Protection Authority (ANPD) ordered Tools for Humanity (TFH), the company behind the biometrics used in the World ID project, to stop its services in the country. The decision became effective on Jan. 25, and followed an investigation that started in November after the launch of the World ID project in Brazil.
The ANPD determined that offering cryptocurrency or financial rewards in exchange for sensitive biometric data could undermine the validity of user consent, which is a key requirement under Brazilian law for processing such data. Consent must be freely given, informed, and unequivocal.
Biometric data collection
World Network, which was previously known as Worldcoin, was co-founded in 2019 by OpenAI CEO Sam Altman. It uses iris-scanning technology developed by TFH to build a universal digital identity and financial network. However, the ANPD is very concerned about the influence of financial incentives on decision-making, particularly for vulnerable populations, and the irreversible nature of biometric data collection. Once submitted, this data cannot be deleted, which raises some serious privacy and ethical issues.
This latest development in Brazil is similar to the regulatory scrutiny in other jurisdictions. In December, Germany’s data protection authority mandated corrective measures for the project to ensure compliance with the EU’s General Data Protection Regulations. These regulatory challenges only added to the difficulties faced by the project and its native token, WLD.
WLD price action over the past 24 hours (Source: CoinMarketCap)
Over the past 24 hours, WLD’s price dropped by more than 11%, which caused it to fall below $2.
Newsstand Operator Probed Over Iris Scans for Crypto
Argentinian authorities are also investigating a newsstand operator in the city of Zapala, Neuquén Province, for allegedly paying people around $20 for iris scans in connection with the controversial Worldcoin project. Local media outlet Río Negro reported that both a consumer rights prosecutor and the police launched separate investigations into the case. The newsstand was identified as Maxiquiosco San Martín, and it reportedly attracted long lines of people daily.
Witnesses claim that an individual inside the newsstand was using it as an office, equipped with a computer, and paid people to provide their biometric data. A resident revealed to Río Negro that the operator had ties to an international company dedicated to scanning irises, which is why Worldcoin is suspected to be involved.
So far, Worldcoin’s practice of scanning irises in exchange for cryptocurrency compensation has raised a lot of concerns across the region. According to the media outlet, it is the only firm of its kind operating in Neuquén Province and in many other parts of Argentina.
The controversy started when a woman tipped off a local radio station by alleging that people were exchanging personal data for cryptocurrency at the newsstand. Daniel Domene from the Province of Neuquén’s Ministry of Security stated that the operator seemed to be buying biometric data and using an international firm for scanning purposes. Although Domene did not name Worldcoin specifically, Río Negro reported that there is evidence suggesting the company is involved.
Argentine law classifies biometric data as sensitive, permitting its collection and processing only under exceptional circumstances. Authorities are investigating whether the operator and any associated companies violated data protection regulations.
While scanning irises in exchange for cryptocurrency is not necessarily a crime under the Argentine criminal code, the operator may face administrative penalties for failing to register with the Personal Data Protection Agency. Investigators are now working to determine if the newsstand operator acted on behalf of Worldcoin or another international entity and whether this entity is properly registered and authorized to handle biometric data in the country.
CZ Calls for Blockchain Transparency in Government Spending
While certain personal data should be kept private, former Binance co-founder Changpeng “CZ” Zhao believes this philosophy should not apply to all data. CZ recently joined the call for greater government transparency by advocating for all public spending to be tracked on blockchain technology.
In a recent post on X, CZ suggested that an immutable public ledger will ensure there is at least some accountability in fiscal operations. His comments were made after reports about Elon Musk and the Department of Government Efficiency (DOGE) exploring blockchain solutions to monitor government spending and reduce the federal deficit in the United States.
The discussion around on-chain government spending gained a lot of traction among advocates of fiscal accountability and sound monetary policy. The debate also sheds some light on the longstanding concerns about fiscal irresponsibility, monetary policy decisions, and the consequences of growing government debt. The removal of the gold standard by President Richard Nixon in 1971 disconnected the US dollar from its peg to a capped, underlying asset, allowing for an expanded money supply and major national debt accumulation. Today, the US national debt is more than $36 trillion, with inflation eroding the purchasing power of the dollar over time.
Fiscal and monetary policies often interact as changes in one drive corresponding adjustments in the other. When governments are not constrained by a fixed monetary supply, structural deficits and increased spending become a lot easier, exacerbating debt. A report from the Congressional Budget Office in May of 2023 warned that the US Treasury was at risk of depleting its funds, with annual deficits projected to double in the coming decade.
Blockchain-based assets like Bitcoin emerged as potential solutions to address these issues of inflation and transparency. By operating on a public ledger, Bitcoin offers an alternative to traditional monetary systems. In August 2024, former President Donald Trump floated the idea of using Bitcoin to pay down the national debt. Similarly, asset manager VanEck proposed that a strategic reserve in Bitcoin could reduce the national debt by 35% over the next 25 years.
Trump’s Crypto Plans Dominate Conversations
Coinbase CEO Brian Armstrong pointed out how US President Donald Trump’s plans for cryptocurrency are becoming a central topic of discussion among both crypto industry executives and the broader financial market. Thinking back to his experience at the World Economic Forum (WEF) in Davos, Armstrong noticed that almost every conversation with major market leaders revolved around the Trump administration’s vision for crypto. He believes that Trump’s focus on the sector is pushing industry leaders to elevate their efforts to stay competitive.
Brian Armstrong at the WEF (Source: Brian Armstrong)
During one of his first public appearances since taking office, Trump pledged to make the United States the global hub for artificial intelligence and cryptocurrency. Armstrong praised Trump for this, along with Argentina’s President Javier Milei and El Salvador’s President Nayib Bukele, for their recognition of free markets as drivers of prosperity.
He also pointed to Trump’s speculated Strategic Bitcoin Reserve as an example of bold crypto-centric initiatives, though the president’s recent executive order focuses more broadly on creating a national digital assets stockpile. This has caused speculation that cryptocurrencies beyond Bitcoin could be included in the administration’s plans.
Armstrong noted that financial institutions, including banks, asset managers, and payment firms, are accelerating their investments in crypto as they prepare for increased competition in the sector. He welcomed the growing participation, and argued that crypto’s potential lies in modernizing the global financial system and expanding its benefits to everyone.
