Brazil Bans Tools for Humanity's Iris Scan Compensation

Brazil's data protection authority ANPD has banned Tools for Humanity from compensating individuals for iris scans, citing concerns over free will interference. The decision affects cryptocurrency exchanges for digital IDs and follows prior data issues with countries like Spain and Portugal. The ban is effective Saturday.

The Brazilian data protection authority, ANPD, announced on Friday that Tools for Humanity, a company co-founded by OpenAI CEO Sam Altman, must halt compensation for iris scans in Brazil. This directive serves as a precautionary step by the ANPD, effective from Saturday, and broadly applies to cryptocurrency-based compensations as well.

Tools for Humanity, which runs the World project, aims to establish a global identity system by trading iris scans for digital IDs and cryptocurrency. However, the ANPD voiced concerns that such financial incentives might compromise an individual's autonomy in deciding whether to share their biometric data.

The ANPD has also instructed Tools for Humanity to clarify on its website who handles the processing of personal data. Although the company asserts compliance with Brazilian laws, it remains engaged with ANPD amid ongoing scrutiny linked to an investigation initiated last November.

(With inputs from agencies.)