Worldcoin, the cryptocurrency project backed by Sam Altman, is facing major legal trouble in Kenya and Indonesia, causing its value to tank.
Kenya: Legal Trouble and Data Deletion
A Kenyan court ruled that Worldcoin’s operations are illegal, citing violations of the country’s Data Protection Act. The court ordered Worldcoin to delete all collected Kenyan data within seven days. The company had been paying Kenyans cryptocurrency for their iris and facial scans, but the court deemed this consent invalid due to the use of monetary incentives. The Data Protection Commissioner will oversee the data deletion.
Indonesia: Suspension and Unauthorized Operations
Indonesian authorities suspended Worldcoin’s registration, discovering that its associated companies were operating without the proper licenses and engaging in potentially illegal activities like misrepresentation. This suspension adds to Worldcoin’s growing legal woes.
Market Reaction: A Price Plunge
The value of Worldcoin’s WLD token dropped significantly following the legal setbacks in Kenya and Indonesia. Investor confidence is clearly shaken, leading to a decrease in open interest. This downturn comes at a bad time for Worldcoin, which recently launched WLD ID in the US and was expecting a Coinbase listing.
Public Concerns and Government Response
Both Kenya and Indonesia’s actions seem to be direct responses to public concern over Worldcoin’s data collection practices. Long queues at Worldcoin’s data collection events raised security and privacy fears, prompting initial government suspensions. Both governments are now actively encouraging citizens to report unregistered digital service providers.
The Orb Controversy
Worldcoin uses devices called “Orbs” to scan people’s irises in exchange for cryptocurrency. While the company promotes this as a way to create digital identities, it’s sparked major privacy concerns and questions about the consent process and the security of the collected biometric data.