Worldcoin, the controversial digital ID project co-founded by OpenAI’s Sam Altman, has secured $135 million in a new funding round aimed at scaling its global identity network. The investment, led by Andreessen Horowitz and Bain Capital Crypto, will fund the expansion of Worldcoin’s biometric infrastructure—most notably, its iris-scanning “orbs.”
The company plans to launch operations in six U.S. cities and expand internationally. Worldcoin says it has already issued digital IDs to more than 12.5 million people across 160 countries as it attempts to create a universal “proof of personhood” for the AI era.
However, the World project’s growth has been met with fierce criticism. Civil liberties groups and global regulators have voiced concerns over its incentive-based model, where users receive tokens in exchange for biometric data. Critics argue that such financial inducements, especially in low-income regions, challenge the idea of informed consent and raise ethical red flags.
Worldcoin’s approach has ignited a broader debate about biometric surveillance, data monetization, and the balance between identity verification and privacy. While investors appear bullish on the company’s future, public trust in the project remains deeply divided.
Brazil, Indonesia, and Germany Crack Down on Worldcoin
Worldcoin’s international rollout is facing increasing resistance, with regulators in Brazil, Indonesia, and Germany tightening scrutiny of its biometric data practices.
In Brazil, the National Data Protection Authority (ANPD) first banned Worldcoin’s activities in January, citing concerns over consent violations tied to its token incentive model. In March, the regulator upheld the decision, warning that the company would face daily fines of 50,000 reais ($8,850) if it continued to operate.
Indonesia followed suit in May. The Ministry of Communications and Digital (Komdigi) suspended Worldcoin’s business license, accusing the company of bypassing its Electronic System Operator registration requirements. A formal investigation is underway, and Worldcoin representatives have been summoned to address alleged noncompliance.
In Europe, the Bavarian State Office for Data Protection Supervision issued a directive last December requiring Worldcoin to meet GDPR standards. At the core of Germany’s concerns is the right of users to permanently delete their biometric data—something critics say remains insufficiently addressed by the company.
The growing regulatory backlash underscores the legal and ethical challenges facing Worldcoin’s attempt to establish a unified global ID layer. Despite surging investor support, the path forward is fraught with increasing governmental resistance.
Quick Facts
- Worldcoin raised $135M to expand biometric ID services globally.
- Brazil, Indonesia, and Germany have issued legal or operational bans.
- Critics say financial incentives for iris scans compromise true consent.
- Worldcoin has enrolled 12.5M users across 160+ countries so far.
