Rewards not allowed to exchange personal data, says ANPD
The National Data Protection Authority (ANPD), Brazil’s data watchdog, has barred a digital ID project from offering rewards to users who enroll in its platform.
Sam Altman’s World is a proof-of-humanity biometric ID project that wants to use crypto rewards to attract users. It is embroiled in a battle against Brazilian authorities who would rather it didn’t.
The National Data Protection Authority (ANPD), Brazil’s data watchdog, has barred the project from offering rewards associated with enrolling users on its platform, claiming that offering any reward for exchanging personal data would violate terms and considerations included in local regulations.
In a recent release, the authority stated that “consent for processing sensitive personal data, such as biometric data, must be free, informed, unequivocal and provided in a specific and highlighted manner, for specific purposes.”
In this sense, the ANPD noted that “monetary consideration offered by the company may interfere with the free expression of the will of individuals by influencing the decision regarding the provision of their biometric data, especially in cases where potential vulnerability and insufficiency make the weight of the payment offered even greater.”
The measure, issued on January 25, is already in effect. This is only a preventive measure and more stringent barring may follow if the institution considers the rules are not being adhered to.
Tools For Humanity, the company behind World, denied these allegations, declaring that it complied with all Brazilian laws and regulations.
“We are in contact with the ANPD and are confident that we can work with them to ensure the continued ability of all Brazilians to fully participate in the World network,” the company said in a statement.
In addition, the ANPD has reported that it was in the analytic phases of a probe on World and that preventive measures could originate from this investigation.
World started operations in the country in November, opening eye-scanning sites in ten different locations in São Paulo. The company claims it has registered over 150,000 individuals in the country, offering rewards in WLD, its cryptocurrency.