Kenyan Government Suspends Worldcoin Activities

The Kenyan government has suspended the activities of the cryptocurrency project WorldCoin in the country pending the completion of inquiries and investigations to establish the safety of the harvested data.

On Wednesday, Kithure Kindiki, the Interior Cabinet Secretary (CS), declared that the suspension would persist until satisfactory guarantees of public safety and the preservation of financial transactions are furnished.

“The government has suspended forthwith activities of WorldCoin and any other entity that may be similarly engaging the people of Kenya until relevant public agencies certify the absence of any risks to the general public whatsoever,” Kindiki said in a statement.

The CS warned: “Appropriate action will be taken on any natural or juristic person who furthers, aids, abets or otherwise engages in or is connected with the activities afore described.”

The Communications Authority of Kenya (CA) and the Office of the Data Protection Commissioner (ODPC) also issued a joint statement the same day stating that a multiagency investigation is underway to address regulatory concerns arising from WorldCoin operations in the country.

CA and the ODPC apprehensions revolve around several critical aspects, including the lack of clarity concerning the security and storage of sensitive data collected. Additionally, they express worry over the practice of obtaining consumer data consent in exchange for monetary rewards, as it may border on inducement.

Uncertainty surrounding consumer protection measures concerning cryptocurrency and related ICT services, and the lack of adequate information on cybersecurity safeguards and standards adds to their reservations. Another point of contention raised is the massive amount of citizen data in the hands of private actors without an appropriate framework to govern its use and protection.

The central aspect of the WorldCoin project is its World ID, touted as a global digital passport capable of proving uniqueness and humanness while selectively revealing credentials issued by other entities while maintaining anonymity. To obtain a World ID, individuals must undergo an in-person iris scan using an orb, a biometric imaging device. A unique World ID is generated upon successful authentication through the iris scan. WorldCoin has established over five Orb Centres in Kenya where people can have their irises scanned.

Additionally, the project offers a digital currency called Worldcoin token (WLD) that is freely distributed to individuals possessing the World ID and the World App. This token facilitates global payments, purchases, and transfers using digital assets and fiat-backed stablecoins.

The company says it has made available 1.5k Orbs spread across over 35 cities in 20-plus countries across five continents to ramp up the signing-up capacity globally. More than 2 million people have signed up for the identity during the two years beta phase. About 350,000 Kenyans have signed up to obtain the free tokens currently valued at $54.

Controversies around WorldCoin are not new. Similar concerns have been raised in other jurisdictions such as Germany, France, the United Kingdom and India.