Privado ID Co-founder Evin McMullen recently voiced concerns over the controversial practice of data collection, particularly biometric data and digital ID systems. According to McMullen, rewarding individuals financially for sharing personal data undermines the principle of informed consent.
McMullen stressed that this issue is more pronounced in emerging economies where individuals are more likely to surrender their biometric data in return for financial gain. He argued:
“Offering financial rewards in exchange for biometric data, especially to individuals in economically disadvantaged situations, is a form of coercion and cannot be considered genuine consent.”
Several governments have expressed serious concerns about data security and ethics related to biometric data collection, resulting in bans or restrictions on digital ID systems that gather resident data.
World ID project, formerly known as Worldcoin, has faced legal challenges in many countries, leading to suspensions or outright bans in most instances. The project offers proof of identity by scanning an individual’s iris at one of its 1,482 orbs located in 695 different places.
Kenya was the pioneer in banning Worldcoin in August 2023 due to privacy and data security concerns. In March 2024, the Spanish data protection agency accused Worldcoin of collecting biometric data from minors and ordered a halt to data collection. Portugal followed suit, suspending the project for three months pending an investigation by the National Data Protection Commission (CNPD) into its iris-scanning technology.
Following an inquiry by the Hong Kong Office of the Privacy Commissioner for Personal Data (PCPD) in May 2024, the government instructed Worldcoin to cease operations in the country, alleging that the company was collecting unnecessary facial images for the proof of personhood, thereby breaching the Personal Data Privacy Ordinance (PDPO).
Most recently, Brazil banned World in January 2025 and instructed the company to halt offering crypto to residents in exchange for their biometric data. The National Data Protection Authority (ANPD) of Brazil emphasized that the provision of crypto or financial rewards for data acquisition undermined the informed consent process for the collection of sensitive data.