Worldcoin Faces Sharp Decline Amid Legal Challenges in Kenya and Indonesia

Worldcoin’s price has experienced a significant drop as it confronts mounting legal challenges in Kenya and Indonesia. After a strong rally in April, the token has lost momentum, declining by 7% in the last 24 hours and over 22% in the past week. Despite the downturn, trading activity for Worldcoin has surged by 64%, reflecting swift reactions from traders to ongoing developments. However, regulatory scrutiny continues to weigh heavily on the project.

Kenyan Court Orders Removal of Biometric Data

One of the most prominent legal setbacks occurred in Kenya, where the Worldcoin Foundation was ordered by a Kenyan High Court to delete all biometric data collected within the country, including facial and iris scans. The ruling also prohibits the project from collecting new data. The court’s decision follows allegations surrounding Worldcoin’s use of cryptocurrency incentives to gather sensitive information, a practice that sparked controversy and criticism.

The legal action was initiated by the Katiba Institute, which challenged Worldcoin’s handling of personal data through its app and orb devices. Concerns about data privacy and compliance with local regulations have brought the project’s operations under intense scrutiny.

Indonesia Suspends Worldcoin’s Digital Identity Platform

Indonesia has also taken regulatory action against Worldcoin, suspending its digital identity platform, World ID. According to a statement released on May 4 by the Ministry of Communication, one of the entities operating under Worldcoin was not properly registered. Authorities have halted Worldcoin’s certification and summoned relevant parties for further questioning.

The suspension highlights the growing regulatory challenges faced by projects like Worldcoin as governments seek to ensure compliance with data protection laws and proper registration procedures.

Worldcoin Price Analysis

From a technical perspective, Worldcoin (WLD) is currently trading near $0.88, down from its April highs of $1.20. The token’s price has been relatively stable since late April but remains just above its key support level of $0.86. Short-term weakness is evident, with WLD breaking below its 20-day moving average.

The relative strength index (RSI) has cooled to 47, indicating reduced buying pressure but not yet a fully bearish trend. If WLD loses support at $0.86, the next levels to watch are $0.80 and $0.75. Conversely, a rebound could push the price back toward the $0.94 resistance level, though regaining bullish momentum would likely require high trading volume and positive developments.

The Road Ahead for Worldcoin

The future of Worldcoin hinges on its ability to navigate increasing regulatory pressure in key markets. As governments worldwide intensify their scrutiny of cryptocurrency projects, compliance and transparency will be crucial for long-term success. Traders and investors should monitor upcoming developments closely, as regulatory decisions could significantly impact the token’s price trajectory and adoption.

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