Regulators on High Alert as WLD Giants Shift $8.85M from Binance

A new address withdrew 9.32 million WLD tokens from Binance, valued at approximately $8.85 million, marking a significant movement in the Worldcoin (WLD) ecosystem. The transaction highlights increased activity in the digital asset, which has faced growing scrutiny from global regulators, particularly over concerns related to biometric data collection and user privacy. The withdrawal occurred amid heightened regulatory attention on the project, including recent warnings from China’s Ministry of State Security (MSS), which has raised alarms about the potential misuse of biometric data collected by Worldcoin’s “orb” devices in exchange for crypto tokens [2].

Worldcoin, developed by Tools for Humanity, has been at the center of regulatory investigations in multiple jurisdictions. China’s MSS did not explicitly name the project in its recent warning, but the description closely aligns with Worldcoin’s operations. The agency emphasized that such data collection practices pose risks to both individual privacy and national security, citing potential misuse of biometric information if it is transferred to external entities. This is the latest in a series of regulatory actions against the project, including a suspension of operations in Indonesia in May 2025 [2].

The WLD price has shown volatility in recent weeks, with a 1.5% increase in the last 24 hours as of the time of the withdrawal. According to market data, the token’s price stands at approximately ¥6.82 per WLD, with a 24-hour trading volume of ¥966.81 million. Despite recent price fluctuations, WLD has seen a 1.5% increase from the previous day and a 1.5% increase from the same period the previous week [3]. However, the token has underperformed the broader crypto market, recording a -11.80% decline over the last month. The current market capitalization of WLD is approximately ¥13.42 billion, and its fully diluted valuation is ¥68.07 billion, based on a circulating supply of 1.97 billion tokens out of a max supply of 10 billion [3].

The withdrawal from Binance suggests that large-scale holders or institutional investors are moving significant portions of their WLD holdings. While the exact identity of the wallet remains unknown, such movements often indicate strategic positioning or liquidity needs. Binance, the largest cryptocurrency exchange by trading volume, has seen a 10% increase in trading volume for its VIP and institutional clients in H1 2025 compared to the same period in 2024 [1]. This growth reflects the expanding role of institutional investors in the crypto market, with Binance enhancing its execution services to support large-volume trades through OTC liquidity aggregation.

The transaction also occurs amid broader debates in the crypto industry about privacy, identity verification, and data security. Worldcoin proponents argue that iris scans offer a secure and scalable method for proving human identity online, potentially reducing fraud and bot activity in decentralized applications. However, critics highlight the inherent risks of collecting biometric data, even when encrypted, due to potential vulnerabilities and the irreversible nature of such personal information [2]. These concerns have led to increased regulatory scrutiny in jurisdictions including the European Union, where data protection authorities have launched investigations under GDPR, and Kenya, which previously halted WLD registrations over similar privacy issues.

As regulatory landscapes continue to evolve globally, projects like Worldcoin must navigate a delicate balance between innovation and compliance. The withdrawal of such a large volume of WLD from Binance underscores the dynamic nature of the crypto market and the increasing importance of institutional-grade execution services in facilitating large transactions while minimizing market impact. With ongoing scrutiny from regulators and fluctuating market conditions, the future trajectory of WLD will likely depend on both regulatory developments and the project’s ability to address privacy and data security concerns [1][2][3].

Source:

[1] Binance Execution Services Now Aggregates OTC Liquidity for Tighter Spreads and Faster Execution (https://www.prnewswire.com/news-releases/binance-execution-services-now-aggregates-otc-liquidity-for-tighter-spreads-and-faster-execution-302540873.html)

[2] Worldcoin in the Spotlight Again as China Warns of Biometric Data Collection Risks (https://bitcoinist.com/worldcoin-in-spotlight-again-china-warns-biometric/)

[3] WLD to CNY: Worldcoin Price in Chinese Yuan (https://www.coingecko.com/en/coins/worldcoin/cny)