World currency collapsed? Two countries ban biometric encryption projects
Sam Altman-backed cryptocurrency venture capital WorldCoin faces tough legal issues in more than one aspect. The Kenyan court ruled that the company’s business was illegal the day after Indonesian officials suspended their activities. One or two regulatory blows have reduced WorldCoin’s token value by more than 5% in the past 24 hours.
Kenyan court: WorldCoin violates data protection laws
Kenya High Court Judge Aburili Roselyne made three orders against the WorldCoin Foundation on May 5, 2025. The court ruled that the company violated the Kenya Data Protection Act 2019 when it harvested IRIS and collected IRIS and facial biometric information from citizens. Now, WorldCoin is commanded to delete all data within 7 days.
The ground has been providing Kenyans with about 7,000 Kenyan shillings in cryptocurrencies to obtain their biometric information. This was brought by the Katiba Institute, a civil society in Nairobi, which brought the court case.
The court said in its ruling that this agreement is illegal because it is caused by monetary incentives along with the cryptocurrency of the world currency. The Data Protection Specialist will monitor the erasure process to confirm compliance.
World Coin Data Breach:
Court orders world coins to delete data collected in Kenya
The court said the data was illegally collected
Data specialist will monitor data deletion #CitizenBriefs @jimkario pic.twitter.com/e4tlmumqoy
– Kenya Citizens Television (@citizetvkenya) May 5, 2025
Indonesian authorities suspend operations
The Indonesian Ministry of Communications and Digital (KOMDIGI) suspended WorldCoin registration to further setbacks to cryptocurrencies. According to officials, the company has been operating its business through unauthorized legal entities.
It was found that the entity PT Terang Bulan Abadi, associated with WorldCoin, has been engaged in business without a valid electronic system operator certificate. Another Indonesian partner, PT Sandina Abadi Nusantara, allegedly, practiced the legal statement.
Komdigi announced in the announcement that failing to comply with the registration requirements of another legal entity and identity theft is a serious offence.
WLDUSDT trading at $0.89 on the 24-hour chart: TradingView.com
Market reaction decreases with price
According to market data, the value of WLD tokens fell to $0.88 when it reached its peak of $0.96. WorldCoin’s open interest also fell by more than 5% to $219 million.
These figures suggest investors are increasingly concerned about the regulatory dilemma of the project. The timing is particularly out of place for WorldCoin, which just made what some analysts call a “bullish move” by launching WLD ID in the United States. Coinbase also sets the list token.
Image: Nelson Dai/Rest of World
Government actions follow public concern
Both government moves appear to have reacted to the public’s response to WorldCoin’s data collection practices. In Kenya, the government had earlier been queuing up in public places, causing security and privacy concerns, and the government had earlier suspended registration activities.
In Indonesia, General Manager of Digital Supervision Alexander Sabar called on citizens to report unregistered digital service providers. He said they invited the public to help all citizens maintain a safe and trustworthy digital space.
The WorldCoin Foundation uses a device called a “sphere” to scan an individual’s iris in exchange for cryptocurrency. Although the company sees it as a way to establish a digital identity, it raises privacy issues and questions about consent and the security of collecting biometric information.
Featured pictures from Santa Clara University, TradingView charts
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