Worldcoin Allegedly Violating Brazil’s Ban, Yet Avoids Legal Complications

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Worldcoin (WLD) and its operator Instruments for Humanity are reportedly continuing operations in São Paulo, Brazil, despite a prohibition on offering residents cryptocurrency in exchange for their biometric data.

However, the company appears to be shielded from a Habeas Corpus lawsuit. The case has raised “ethical” concerns at the nation’s highest court.

Is Worldcoin ‘Ignoring’ Brazil Ban?

G1, the digital division of the O Globo newspaper, has reported that Instruments for Humanity seems to be disregarding a decision from Brazil’s National Data Protection Authority (ANPD).

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The ANPD ruling prohibits Instruments for Humanity from providing individuals with cryptocurrency or financial incentives in exchange for their biometric information within Brazilian territory.

Worldcoin has experienced remarkable success in Latin America, primarily operating in the São Paulo region.

Nonetheless, it has also faced ongoing privacy and regulatory challenges. In addition to the ban in Brazil, it has been subject to investigations in Argentina and other locations.

It was reported that some Worldcoin centers in São Paulo “are still operational and offering crypto payments in exchange for biometric data.”

G1 noted that its reporters “visited three of Worldcoin’s 52 service points in São Paulo,” where they “spoke to 12 individuals who had just registered.”

These individuals reportedly confirmed that “the company continues to promise payment” for new “registrations.”

The outlet observed that the offices “were not very busy,” but added that “service was continuing as usual” at the centers.

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São Paulo Popularity

The media outlet quoted a Worldcoin employee “who preferred to remain anonymous” stating that “there had been no guidance regarding payment suspension.”

The newspaper reported that there are 52 Worldcoin centers in São Paulo, several of which are “on the outskirts of the city.”

The media outlet stated that Worldcoin informed G1 it “continues to operate legally while collaborating with ANPD to address its issues.”

However, the company reportedly “did not respond” to inquiries about its plans to halt payments.

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The ANPD has indicated that “failure to comply” with its directive “will be considered an aggravating factor in any administrative sanctioning process.”

Habeas Corpus Case

Meanwhile, the Brazilian media outlet Livecoins reported that an individual named Joaquim (surname withheld) filed a Habeas Corpus lawsuit with the Superior Court of Justice (STJ).

Joaquim stated he initiated his case “on behalf of 150,000” individuals in the country, all of whom had scanned their irises in exchange for WLD payments.

In his petition, Joaquim requested “a preliminary injunction” on behalf of “all Brazilians who had their biometric data collected by Worldcoin.”

He asserted that collecting iris scans was a “controversial practice” now “being implemented in various parts of the world, including Brazil.”

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Joaquim claimed that using cryptocurrency as “remuneration” can “be perceived as a form of coercion over consent, undermining the principle of freedom of choice of the holder.”

The petition also requested that the court mandate “the immediate suspension of data collection.” It further sought an order for the court to “return all biometric data to Brazilians.”

If the data cannot be returned, the petition states, the authorities “should order its destruction.”

However, the STJ’s minister and president Herman Benjamin indicated that the request was “not within the jurisdictional competence” of the court.

Worldcoin Allegedly Violating Brazil's Ban, Yet Avoids Legal Complications1Brazil’s Superior Court of Justice. (Source: The Light [CC BY-SA 2.0])

Case Not Applicable: Lawyer

Livecoins also quoted criminal lawyer Lucas Schirmer de Souza explaining that Habeas Corpus laws are “not applicable in the case against Worldcoin.” The lawyer stated:

“Habeas Corpus is a constitutional guarantee provided for in [the] Federal Constitution, as well as [the] Criminal Code. Its purpose is to protect the freedom of movement of an individual who is suffering or is about to suffer violence or unlawful coercion by authorities or third parties. It only applies in cases where there is an imminent unlawful coercion of freedom of movement.”

18 months since launch, 10.6M individuals verified, 22.7M people on World Network.
Thank you for being such an incredible community Worldcoin Allegedly Violating Brazil's Ban, Yet Avoids Legal Complications2 https://t.co/ReyFgj1GiT

— World (@worldcoin) January 24, 2025

Instruments for Humanity was co-founded by US tech entrepreneur and OpenAI CEO Sam Altman.

The company has also responded to the ANPD ruling, asserting that it has not violated Brazilian law.

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