Rewritten Article
High Court of Kenya Orders Worldcoin to Cease Data Collection
Kenyan Court Instructs Sam Altman's Cryptocurrency Venture to Erase Biometric User Information
In a significant move, the High Court of Kenya has decided that Worldcoin, a cryptocurrency-based digital identity platform, has infringed upon privacy laws by collecting biometric data in an unapproved manner.
The ruling, issued on the 5th of May, 2025, mandates Worldcoin to delete all biometric data (iris and facial scans) it had acquired within seven days, under the supervision of the Office of the Data Protection Commissioner (ODPC). This decision is a response to Worldcoin's failure to obtain valid consent from the ODPC and incentivizing data collection using cryptocurrency, which was deemed as a violation of the principle of informed consent.
Katiba Institute, the NGO that initiated the lawsuit, celebrated the judgment, referred to as a triumph for privacy rights in Kenya. Joshua Malidzo Nyawa, legal counsel for Katiba Institute, stated, "The right to privacy is a constitutional right, and its violation can be attributed to a failure to comply with procedural rules such as a Data Protection Impact Assessment (DPIA). Consent obtained under such inducements, including cryptocurrency rewards, is not free and is unlawful."
Worldcoin, led by Sam Altman and Alex Blania, uses custom-built iris-scanning orbs to grant users a digital identity, known as a "World ID," in exchange for their native token – WLD. While the company positions World ID as a privacy-focused identity solution, emphasizing local data storage and cryptographic protections, skepticism from global watchdogs persists.
The court's ruling follows earlier controversy surrounding Worldcoin's activities in Kenya, including instances where it was described as "a gang of criminals" by a government official. Following the conclusion of a police investigation in June 2024, a ban was lifted; however, the recent verdict has dented the company's attempts to regain trust in the market.
World's data privacy woes are not limited to Kenya. In Indonesia, the company was temporarily suspended on the 4th of May, 2025, due to alleged non-compliance with local regulations. Enforcement actions have also taken place in Hong Kong, Germany, and Brazil, all stemming from data privacy concerns.
Despite these setbacks, World is pressing ahead with expansion plans in the U.S., launching in six cities: Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco. Residents in these cities now have the opportunity to earn WLD tokens by signing up.
Following the court ruling, the WLD token's value dropped by 6.8%. This decline is part of a larger weekly drop of 22%, following similar suspensions in Indonesia.
Edited by Sebastian Sinclair
Daily Debrief Newsletter
Sources:[1] High Court of Kenya orders Worldcoin to delete biometric data collected in Kenya (2025, May 5). Link.[2] Worldcoin ordered to delete all collected biometric data in Kenya (2025, May 5). Link.[3] Worldcoin's Data Collection Practices Investigated in Kenya (2024, June). Link.[4] Worldcoin Suspension in Indonesia Sends Shockwaves through Cryptocurrency Markets (2025, May 4). Link.[5] Worldcoin's Controversial Data Collection Practices Spark Debate in Kenya (2025, May 5). Link.
- In a verdict that could have implications for cryptocurrency-based platforms globally, the High Court of Kenya has ordered Worldcoin to cease its data collection and delete all acquired biometric data.
- The regulatory action comes after Worldcoin was accused of violating privacy laws by collecting biometric data without approved methods and incentivizing data collection through crypto rewards.
- This decision follows a series of enforcement actions against Worldcoin in other countries, including Indonesia, Hong Kong, Germany, and Brazil, all due to data privacy concerns.
- Worldcoin, which uses iris scanning technology to grant users a digital identity in exchange for its native token – WLD, continues to press ahead with expansion plans in the U.S. despite the setbacks.
- The regulatory hurdles and subsequent drop in WLD token value have highlight the need for crypto platforms to prioritize data privacy and obtain proper regulatory approval before initiating operations in new markets.
- Katiba Institute, the NGO that initiated the lawsuit against Worldcoin, called the ruling a triumph for education-and-self-development, emphasizing the importance of informed consent and adherence to regulatory guidelines in the rapidly evolving field of blockchain technology.
