Worldcoin has been banned in Brazil after an appeal to the country's data regulator fell on deaf ears.

The controversial project, which rewards users in crypto for having their eyes scanned, has faced a backlash from governments globally.

Last month, Brazil's National Data Protection Authority (ANPD) had ordered a clampdown—fearing such payouts may influence consumer behavior.

Its guidelines state consent to process biometric data "must be free, informed and unequivocal."

Concerns were also raised that sensitive information collected from the public could not be deleted at a later date—with consumers unable to revoke consent.

Worldcoin, now known as the World project, had sought 45 days to make changes to its app and stop offering financial compensation.

But this request was denied, with regulators arguing World could simply postpone appointments to scan irises until the necessary changes were made.

The project, co-founded by OpenAI CEO Sam Altman, has been given 10 business days to officially confirm that crypto payouts have been suspended.

In a statement, World said it "respects the ANPD's decision," and its locations in Brazil will remain open "to provide education and information to the public."

It apologized to consumers who had wished to join the program, but stressed it "remains committed to complying with laws in the markets where it operates."

The initiative sees consumers scan their eyeballs in order to receive a "World ID" that can help them verify they're a real human and not a bot.

Over in the European Union, concerns have been raised that the project falls afoul of the trading bloc's data protection laws.

Worldcoin (WLD) had seen its value surge after Donald Trump unveiled a $500 billion investment into AI infrastructure that involved OpenAI.

But CoinGecko data shows this euphoria was short-lived, with WLD plunging by 36.8% over the past 30 days, and 52% since this time last year.

Edited by Stacy Elliott.

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