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Worldcoin faces legal challenges in its operations across Kenya. On May 5, 2025, the High Court determined Worldcoin violated Data Protection Act 2019 regulations. According to Justice Aburili Roselyn, the Worldcoin Foundation must erase all the biometric data it obtained from Kenyan citizens over seven days.
Worldcoin obtained invalid consent through its exchange system, which offered cryptocurrency in return for iris and facial scans. A legal challenge against Worldcoin began when the Nairobi-based Katiba Institute filed its case before Kenya's courts. The Data Protection Commissioner's Office will direct data erasure activities while confirming compliance through inspections.
Worldcoin paid users up to 7,000 Kenyan shillings of digital tokens after users submitted their biometric data. Lawmakers and critics launched several challenges because the practice exposed significant data privacy and security threats.
Indonesia's Ministry of Communications and Digital suspended Worldcoin's operations because it did not fulfill the necessary regulatory standards. According to official statements, Worldcoin affiliate PT Terang Bulan Abadi operated without the necessary certification as an Electronic System Operator.
Local partner PT Sandina Abadi Nusantara reportedly provided incorrect information about its corporate standing. Law enforcement agencies declared these activities major criminal offenses, which raised concerns about identity theft risks. According to Komdigi, citizens must notify authorities about unlicensed digital services because this protects Indonesia’s digital ecosystem.
Worldcoin's use of iris-scanning "Orbs" to distribute cryptocurrency has sparked debates about privacy rights and user permission concerns. WorldCoin's interruption, alongside intensifying regulatory challenges, heightens the project's difficulties in multiple governing jurisdictions.
The legal challenges affecting Kenya and Indonesia led Worldcoin's WLD token to slide from $0.96 to $0.88. Following assessments of trading volume, open interest dropped by 5% to $219 million. The figures have diminished investor trust because of escalating regulatory barriers.
The WLD ID service from Worldcoin started in America before their Coinbase trading launch, while legal challenges unfolded in Kenya and Indonesia. Worldcoin faced global implementation challenges because regulatory standards prevented the worldwide expansion of its project.
