Can WLD Survive Its Correction? Looking at WorldCoin's Recent Ban in Kenya and Indonesia

2025-05-07

WorldCoin (WLD), the ambitious project co-founded by OpenAI CEO Sam Altman, is now facing its biggest credibility test yet. After explosive global growth since its 2023 launch, the project has recently been hit with two major regulatory setbacks—in Kenya and Indonesia.

Both countries have banned WorldCoin’s operations due to concerns over how it handles biometric data, specifically iris scans and facial recognition.

These developments have raised serious questions about the future of WLD coin. As users and investors react to the news, WorldCoin’s value and legitimacy are under intense scrutiny. Can the project navigate through growing resistance, or will this be a turning point that halts its expansion?

Why Did Kenya Ban WorldCoin?

Kenya’s High Court recently ordered WorldCoin to delete all biometric data collected within the country. The ruling, delivered by Justice Aburili Roselyne, came after a petition argued that the project had violated Article 31 of Kenya’s Constitution, which guarantees privacy rights.

The court instructed WorldCoin to erase all iris scans and facial data within seven days and banned it from further collecting or processing such information.

The main issue was that WorldCoin had not completed a Data Protection Impact Assessment, a legal requirement for projects that deal with sensitive user data.

Despite being one of WorldCoin’s largest markets before the ban, Kenya now stands firm against the project’s practices. This marks a major setback for WorldCoin, especially as it tries to present itself as a leader in decentralized digital identity systems.

Indonesia Suspends WorldCoin for Permit Violations

Just a day before Kenya’s ruling, Indonesia also suspended WorldCoin’s operations. The Ministry of Communication and Digital found that the company was operating under a different business entity than the one listed on its permit.

Specifically, the iris-scanning services were offered through PT Sandina Abadi Nusantara, even though the permit was held by another entity—PT Terang Bulan Abadi.

This type of permit misuse is a serious offense in Indonesia. Authorities labeled the switch as a violation of electronic system regulations and ordered the company to suspend new user registrations while investigations continue. Indonesia has warned that failure to comply could result in permanent blacklisting.

This crackdown is particularly significant, as Indonesia is one of Asia’s largest and fastest-growing crypto markets, with more than 20 million active traders and over $30 billion in crypto transaction volume in 2024 alone.

Losing ground in such a promising market could be a major blow to WorldCoin’s long-term plans.

What is Driving Global Concern?

WorldCoin’s core model—offering WLD coins in exchange for biometric data—has sparked global debate. Some users, especially in low-income countries, see it as a way to access financial tools in exchange for non-monetary value like iris scans.

However, critics argue that this model exploits users who may not fully understand what they are giving up.

Governments and regulators are also raising concerns. In addition to Kenya and Indonesia, countries like Germany, Brazil, and Singapore have opened investigations into WorldCoin’s data collection methods.

These countries are focusing on whether informed consent was properly obtained and whether users were misled by the offer of financial rewards.

As digital privacy becomes a top global issue, WorldCoin’s challenges reflect a wider shift. Emerging economies are no longer willing to tolerate data practices that ignore national laws or ethical standards.

Tech companies must now align with local regulations and user protections if they want to operate in these markets.

Is WorldCoin Still Expanding?

Despite setbacks in Asia and Africa, WorldCoin is continuing its global rollout. The project recently launched services in six U.S. cities, including San Francisco and Miami.

It also announced a partnership with Circle to integrate the USDC stablecoin into its network. These moves show that WorldCoin is not slowing down, at least not yet.

However, its expansion in the U.S. is likely to face scrutiny too. The United States enforces strict state-level biometric laws, and any violation could result in lawsuits and heavy fines. For a project already facing international criticism, any misstep in the U.S. could be costly.

What’s Next for WLD Coin?

The price of WLD has already responded to recent news. Following Kenya’s court order, WLD fell nearly 7 percent to $0.89, with its market capitalization hovering around $1.2 billion. For investors, this dip highlights the volatility tied not just to market conditions, but to legal challenges and public perception.

To regain trust, WorldCoin must show that it can comply with local laws and respect user privacy. This includes transparent communication, valid consent mechanisms, and proper registration in every jurisdiction it enters. Without these steps, WLD coin risks losing credibility and market support, even as it tries to grow.

Frequently Asked Questions (FAQs)

Is Worldcoin worth buying?

That depends on your individual circumstances and how much of a risk you're willing to take in your investments. Consider the pros and cons before you decide to invest in Worldcoin. The crypto market is highly unpredictable, and prices can fluctuate drastically in a short amount of time.

What is Worldcoin used for?

Worldcoin's business is to provide a reliable way to authenticate humans online, which it calls World ID. It attempts to recruit new users to join its network by getting their iris scanned using Worldcoin's orb-shaped iris scanner in return for some WLD tokens. This has caused privacy concerns in multiple countries.