Brazil’s National Data Protection Authority (ANPD) has imposed measures suspending financial incentives offered by the World project (formerly Worldcoin) for collecting biometric data. This follows an investigation into the firm Tools for Humanity, which manages the protocol, opened in November 2024.
Founded in 2019 by Sam Altman and Alex Blania, Tools for Humanity aims to create a global digital identity and financial system. Its protocol, World ID, verifies a user’s identity by scanning the iris with a special camera (“orb”), offering compensation in WLD tokens.
ANPD Findings
The regulator determined that paying in cryptocurrency may undermine the principle of free consent in collecting personal data, including biometrics. According to local rules, users must grant permission for data processing freely, with full knowledge of its purposes.
The ANPD is particularly concerned about the economic vulnerability of certain populations, for whom such payments may hold disproportionate weight. Additionally, it notes that the data collected cannot be deleted once obtained, nor can consent be easily revoked.
As a result, the agency applied preventive measures against Tools for Humanity on January 25.
World’s Troubles Elsewhere
In December 2023, the project disabled biometric verification for users in Brazil, India, and France. The World program also drew scrutiny from authorities in the UK, Germany, Argentina, Colombia, Singapore, and Kenya.
- Argentina: In May 2024, President Javier Milei met with Altman and Blania to discuss potential investments.
- Kenya: Prosecutors ordered the closure of a case against the project in June 2024.
In May 2023, Tools for Humanity raised $115 million in a Series C funding round. Neither the company nor its investors disclosed the post-money valuation, though Dealroom estimates the startup is worth $460–690 million.
Token Price Reaction
Over the past 24 hours, WLD token price has fallen nearly 10% amid a broader crypto correction. It currently trades near $1.90, about 64% below its all-time high from March 2024 (CoinGecko).
World’s market cap sits around $1.8 billion.
In September, Tools for Humanity began limited testing of a facial recognition system for World App in select locations.
Rivals on the Rise
Meanwhile, blockchain startup Humanity Protocol has reached a $1.1 billion fully diluted valuation after securing $20 million in a funding round led by Pantera Capital and Jump Crypto.
🚨 HUGE NEWS ALERT
— Humanity Protocol 🖐️ (@Humanityprot) January 27, 2025
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
The company is developing a digital identity system based on palm scanning.
“Our protocol lets people prove they’re human without revealing personal information—tackling bots, fake accounts, and online fraud,” explained founder and CEO Terence Kwok in an interview with Reuters.
He said the product would be ready “in the coming months,” adding that the team is considering launching its own token.
Kwok anticipates that new crypto and blockchain solutions will gain momentum under U.S. President Donald Trump.
“A business-friendly environment could accelerate blockchain development and bring in more investment,” the CEO concluded.
Context
- In May 2024, Humanity Protocol closed a $30 million investment round, already claiming a $1 billion valuation.
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