World Network Struggles To Expand In Latin America

Worldcoin changed its name to World Network on October 17, as Sam Altman’s crypto identity protocol continues to push for expansion without confirming legal requirements first.

In Latin America during the last month, the project opened Orb Verification sites in Brazil, Costa Rica, and the Dominican Republic, elevating the number of countries in the region where it has launched to ten.

In the Dominican Republic, the Orbs began collecting users' biometric data on November 9.

Less than two weeks later, World's operations were ordered to pause by the National Consumer Protection Institute as it found “abusive clauses” in the contracts with users.

The governmental agency further noted that the lack of a local office makes it harder for Dominicans to file legal complaints against it.

In Brazil, iris scanning operations started on November 13 in ten locations in the city of São Paulo. Brazil was one of the countries where the project tested the Orb Operators before its official world launch in July 2023.

There, the protocol will be offering 53 WLD tokens (around $118 U.S. dollars and $684 Brazilian reais) to users who create a World ID, 25 released immediately and the rest over the course of the following year.

The crypto project is also eyeing a partnership with the Central Bank’s DREX project, a Brazilian Central Bank Digital Currency. “We have the Central Bank on our radar,” said Ana Carvalhido, TFH Head of Public Policy Brazil.

The National Data Protection Authority (ANPD) has already met with the World Network representatives to formally open an inquiry into their operations and ascertain whether they comply with the national data privacy laws (LGPD).

While Latin America has proven to be an easier ground for expansion than Europe, the identity protocol hasn’t been able to keep clear of trouble.

On October 23, the National Consumer Service of Chile (SERNAC) required legal action to suspend World Network operations in the country.

The agency first sued the company in August, accusing it of breaking the national consumer and data protection law in at least three different instances.

But when, at the rebranding event, the crypto project announced it would partner with delivery service companies to allow iris-collection operations to take place at people’s homes, SERNAC pushed for operations to be suspended.

Rappi, the delivery service bringing Orbs directly to people in Chile, backed down from the partnership with World Network in the country, saying it would only go through with a trial version of the service in Argentina.

“Rappi and World signed a preliminary agreement to develop a pilot test for an on-demand ‘proof of humanity’ service to be carried out in Argentina during the first quarter of next year. There are no plans to implement this service in Chile,” said a representative of Rappi.

Argentina, the country with the most verified World identities, fined the firm for 194 million pesos ($210,000) in July 2024 for several breaches of the national law.

In Brazil, where only ten iris-scanning sites have been opened for São Paulo’s 11.5 million citizens, no similar on-demand service has yet been suggested.

“Our operation in Brazil is recent. We are still studying some specific aspects,” said Carvalhido, who has worked with Rappi in the past.

In Europe, the identity protocol is still awaiting a verdict from German data authorities to determine whether it can continue operations in the European Union. In Asia, it started operations in Malaysia on September 25.