Kenya Terminates Worldcoin Local Operations Amid Concerns Over Data Breach

Jimmy Aki
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The Kenyan government has taken a significant step by halting all activities associated with the cryptocurrency project, Worldcoin, within its borders. This makes Kenya the first country to enforce such a measure.

This decision was prompted by concerns about potential data breaches and privacy issues, and it reflects the government’s commitment to safeguarding its citizens’ personal information.

Kenya Clamps Down on Worldcoin Project

The Kenyan government has taken decisive action to suspend all operations related to Worldcoin, the identity crypto project co-founded by OpenAI’s Sam Altman.

The project quickly gained considerable traction in the country by providing citizens with complimentary tokens, known as WLD, in return for their iris scans.

The attractiveness of these tokens prompted thousands of Kenyans to engage in the initiative, even though some acknowledged their limited understanding of cryptocurrency.

In a statement shared on the ministry’s Facebook page on Wednesday, the Interior Cabinet Secretary of the country, Kithure Kindiki, expressed deep concern over Worldcoin’s ongoing activities.

As a result, the government has decided to temporarily suspend local operations until relevant public agencies can certify that there are no risks posed to Kenyans.

According to the report, the government is particularly interested in understanding how the collected data will be safeguarded and the intentions of those harvesting such sensitive information.

Additionally, the government stressed the need for upfront reassurances to ensure the safety of the public and the integrity of financial transactions involving such a significant number of citizens.

The government also confirmed that the suspension would remain in effect until relevant security, financial services, and data protection agencies thoroughly investigate the authenticity and legality of Worldcoin’s activities.

Furthermore, it has issued a warning stating that appropriate actions will be taken against any individuals associated with these activities.

Worldcoin Assures Kenyan Government of Cooperation

In light of the Kenyan government’s clampdown, the Worldcoin team has responded, affirming their commitment to cooperation and transparency.

The company acknowledged the CMA’s declaration that its products are not considered investment products and values the authority’s willingness to collaborate with pioneering fintech solutions.

According to Worldcoin, the demand for its verification services to establish proof of personhood in Kenya has been extremely high. This has resulted in tens of thousands of individuals waiting in lines for three days to obtain a World ID.

As a precautionary measure to manage the crowd volume, the company has temporarily halted the verification services. During this period, they will develop an onboarding program incorporating more effective crowd control measures.

Additionally, Worldcoin aims to engage with local officials, particularly the Office of the Data Protection Commissioner (ODPC), to raise awareness and understanding of the privacy measures and commitments they implement in Kenya and globally.

This cooperation will be facilitated through its contributor company, Tools for Humanity. The company emphasized that they are dedicated to providing an inclusive and privacy-preserving decentralized on-ramp to the global digital economy.

Furthermore, they eagerly anticipate resuming their services in Kenya while closely cooperating with local regulators and other stakeholders.

Worldcoin, introduced on July 24th, is an open-source protocol with the goal of granting worldwide access to the global economy.

At the heart of the project is World ID, described as a “digital passport,” designed to confirm the authenticity of the holder as a genuine human rather than an AI bot.

To acquire a World ID, users must download the World App, which is compatible with the startup’s protocol.

In addition, they must undergo a verification process involving eyeball scanning at fry an Orb – a verification device shaped like a ball, provided by the startup.

In certain countries, users are rewarded with free cryptocurrency as part of the company’s efforts to establish a novel “identity and financial network.”

During its beta phase, the project attracted approximately 2 million users, and after its recent launch, it plans to expand its ‘orbing’ activities to 35 cities in 20 different countries.

Criticism About Worldcoin

Worldcoin envisions creating a global identification mechanism that relies on iris scans to verify an individual’s uniqueness and human identity.

Despite its ambitions, the project has encountered various challenges. During the registration process, it received criticism for allegedly employing deceptive and exploitative practices in countries such as Indonesia, Ghana, and Chile.

An investigation conducted by the MIT Technology Review also revealed significant discrepancies between Worldcoin’s public statements and its actual practices regarding privacy protection and user experience.

The project’s representatives were found to have utilized misleading marketing tactics, collected more personal data than disclosed, and failed to obtain proper informed consent.

Such actions have raised concerns about potential violations of the European Union’s General Data Protection Regulations (GDPR) and local laws.

As a result of these concerns, the UK Information Commission has also initiated investigations into Worldcoin.

However, according to their Whitepaper, the team reassures users that any personal data shared with Worldcoin is encrypted during transmission and storage.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.