Privacy Concerns and Regulatory Bans Impact Worldcoin

Sam Altman’s Worldcoin, a crypto currency aiming to create a global digital ID, has faced significant setbacks due to privacy concerns and regulatory bans in Kenya and Indonesia. The crypto currency’s price has dropped below $0.90, threatening its $1 billion valuation and market confidence.

On May 6, 2025, the High Court of Kenya ruled that Worldcoin’s biometric data collection practices violated the country’s data protection laws and ordered the company to permanently delete any biometric data collected from Kenyan citizens. The court’s decision marks a landmark victory for digital rights advocates in the country and has led to a 10% drop in the WLD token price.

Additionally, Indonesia’s Ministry of Communication and Digital (Komdigi) has suspended the registration licenses of Worldcoin and its associated identity verification service, WorldID, amid rising public concern and suspected regulatory violations. This suspension adds to the challenges faced by the crypto currency, further impacting its market valuation and confidence.

The regulatory actions in both countries have been driven by concerns over the legality and ethical implications of Worldcoin’s data collection methods. The Kenyan High Court ruled that the data was collected without valid consent from the Office of the Data Protection Commissioner (ODPC) and through the use of cryptocurrency rewards, violating informed consent principles.

As of May 5, 2025, the WLD token price was at $0.928175, with a market cap of $1,303,162,894.355. The crypto currency’s price has been volatile, with a 52-week high of $6.28221 and a 52-week low of $0.581716.

These regulatory actions and privacy concerns have significantly impacted Worldcoin’s operations and market value, highlighting the challenges faced by innovative crypto projects in navigating global regulatory landscapes.