Brazil Maintains Ban on Iris Scan Payments Amid AI Privacy Concerns
Brazil's data protection regulator denied an appeal by Tools for Humanity to allow payments in cryptocurrency for iris biometric data collection under the World project. The ANPD determined that an alternative referral-based incentive scheme still constituted indirect financial compensation that undermined user consent and autonomy.
What happened
In January 2025, the Autoridade Nacional de Proteção de Dados (ANPD) prohibited Tools for Humanity from offering financial incentives in the form of 50 Worldcoin (WLD) tokens, valued between R$ 300 and R$ 700, in exchange for iris biometric data collection for the World project.
The company proposed an alternative referral-based system where users would not receive direct payment for their own iris scan but could earn tokens if people they referred also completed the biometric verification process.
The ANPD rejected the appeal on July 18, 2025, determining that the referral scheme still constituted indirect financial compensation because users remained economically benefited based on others' biometric data collection.
Tools for Humanity stated it respectfully disagreed with the ANPD's interpretation and intended to pursue additional legal measures to clarify the matter.
Reported impact
The ban prevents Tools for Humanity from operating its iris payment system in Brazil, where activities remain suspended.
Brazilian citizens cannot participate in financial incentives for biometric data collection under the World project.
Index analysis
The ANPD identified risks that even the alternative referral model failed to eliminate because users remained economically motivated by others' biometric data submission, creating an imbalanced relationship between the company and citizens.
The regulator expressed concern about the legality of treating sensitive biometric data and the transparency of communications with data subjects, particularly regarding financial incentives that affect user decision-making and consent.
Governance controls
The ANPD determined that the proposed referral-based incentive system did not present sufficient elements to guarantee elimination or reduction of privacy and data protection risks.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.