Global Regulatory Scrutiny and Data Deletion Threaten Worldcoin’s Biometric Project and WLD Token
Worldcoin, a blockchain-based biometric identity verification project, is under rising global regulatory scrutiny due to concerns over user privacy, data protection, and compliance failures. Indonesian authorities suspended Worldcoin’s local operations, revoked its license, and are now considering requiring the deletion of 500,000 retinal data records, citing fears of data leaks and serious legal violations. Worldcoin offered incentives valued around $48.34 (800,000 IDR), but WLD cryptocurrency was clarified as an optional reward, not mandatory compensation. All iris-scanning activities in Indonesia are on hold pending investigation. Similarly, Kenya’s High Court declared Worldcoin’s biometric data collection illegal, ordering all data deleted and banning further collection for violating privacy laws. The Philippines and several other jurisdictions—including Spain, Germany, Hong Kong, Brazil, Colombia, India, and South Korea—have launched investigations or implemented restrictions around data privacy and transparency issues. These mounting regulatory and legal setbacks threaten the global adoption of Worldcoin’s digital ID platform and could negatively impact the price and sentiment of its WLD token, with ongoing suspension and potential data deletions casting doubt over the project’s future.
Bearish
This news increases negative sentiment around Worldcoin and its WLD token. Multiple countries are suspending, banning, or investigating Worldcoin’s biometric data collection due to privacy and compliance concerns. The risk of forced data deletion in Indonesia and ongoing legal challenges in other countries directly endanger user base growth and long-term adoption of Worldcoin’s platform. Regulatory interventions historically exert strong downward pressure on token price and market confidence, as traders anticipate project uncertainty, halts in user growth, and potential market exits. Until legal clarity or positive resolutions emerge, the overall market outlook for WLD remains firmly bearish.