Worldcoin (WLD) Faces Legal Challenges in Kenya and Indonesia, Resulting in Token Price Drop

A high court in Kenya has ordered the deletion of all biometric data collected by Worldcoin in the country, while in Indonesia, officials have suspended the project’s digital identity platform, reports Pintu.

Both incidents have affected the exchange rate of the Worldcoin (WLD) token, which experienced a significant drop.

Kenya: Biometric Data to Be Deleted

Katiba Institute had filed a lawsuit against Worldcoin, accusing the project of violating data protection laws by collecting sensitive information without proper consent.

The court held that Worldcoin’s offer of $50 in WLD tokens in exchange for an iris scan was a form of inducement that affected the legitimacy of the user’s consent.

“The court found that Worldcoin’s actions were a blatant violation of Article 11 of the Constitution of Kenya, which guarantees the right to privacy,” the report noted.

The ruling, which was issued on May 5, has ordered Worldcoin to delete all biometric data collected in Kenya within 30 days.

Worldcoin Legal Cases in Indonesia

In Indonesia, Worldcoin’s digital identity platform, World ID, has been suspended by local officials due to similar concerns regarding data breaches.

The Indonesian Ministry of Communications stated that one of the entities under Worldcoin was not properly registered, triggering the suspension of certification and summons for further examination.

“We are suspending the certification and summoning them for further examination. One of the entities under Worldcoin has not registered properly, so we are examining it further,” a ministry official was quoted as saying.

Worldcoin has stated that it will temporarily suspend its human uniqueness verification services in Indonesia and seek clarification regarding relevant licenses.

Impact on the Market and Future of Worldcoin

Both of these legal events have negatively impacted the Worldcoin (WLD) exchange rate, which fell nearly 10% in the last 24 hours on May 6, 2025.

While Worldcoin seeks to expand its operations in the United States, the legal challenges faced in Kenya and Indonesia may hinder further expansion.

Investors and users are now more wary of the risks associated with data privacy and security in these projects. Going forward, Worldcoin will need to navigate these regulatory pressures carefully to restore market confidence and stability.