Brazil has banned Tools for Humanity (TFH), a biometric identity company co-founded by Sam Altman, from paying Brazilian citizens in cryptocurrency for iris scans. The country’s National Data Protection Authority (ANPD) found that such payments interfere with the free and informed consent of individuals, which is required by Brazil’s data protection law. This law stipulates that consent for biometric data processing must be “free, informed, and unequivocal,” and the offer of financial incentives for personal data raises concerns about coercion or undue influence.
TFH uses iris scans to create unique digital identifiers for users, which it calls “World IDs.” These identifiers aim to distinguish humans from artificial intelligence online. The company has been promoting the service by offering cryptocurrency to those willing to have their irises scanned, claiming that the World ID will enhance digital security by allowing users to prove their humanity on the internet.
The ANPD’s investigation, which began in November, led to the ban and also required TFH to indicate on its website the person responsible for processing personal data. This action reflects the regulator’s concern about the potential risks involved in collecting such sensitive data, especially in a country with a large and diverse population.
The ANPD emphasized that financial incentives for biometric data collection were particularly problematic in Brazil due to vulnerabilities within the population.
In response, TFH, which is headquartered in San Francisco and Munich, asserted that its business is compliant with Brazilian law. A spokesperson for the company stated that inaccurate reports had led to misunderstandings, and they were in communication with the ANPD to resolve the issue. TFH remains confident it will work with the regulatory authorities to allow Brazilians to continue participating in the World network without compromising their privacy.
