Kenya Halts Worldcoin Operations: Concerns Over Financial Security and Privacy

Kenya’s Ministry of the Interior has taken the unprecedented step of suspending the operations of Worldcoin, a pioneering identity crypto protocol co-founded by Sam Altman of OpenAI.

The move comes as a response to concerns over the project’s legitimacy, financial security, and data protection, prompting local authorities to initiate a comprehensive investigation. The decision was officially communicated through a statement on the ministry’s Facebook page.

Worldcoin’s ambitious mission revolves around establishing a global identification mechanism based on iris scans—a technology that can authenticate an individual’s unique identity.

As the world navigates a landscape increasingly intertwined with artificial intelligence, such an innovation could hold crucial significance.

However, the project’s methods of biometric data collection and user sign-up processes, particularly in developing countries, have drawn sharp criticism and accusations of exploitation.

European regulators have already begun investigations into Worldcoin, with the Bavarian data protection office overseeing the firm’s activities.

Kenya, however, has taken a more decisive stance by suspending the entirety of Worldcoin’s operations as its local agencies conduct a thorough investigation into the matter. This move marks Kenya as the first country to take such drastic action against the project.

Users who have undergone iris scans as part of Worldcoin’s offering have received WLD tokens in return since the project’s recent launch.

In the wake of the suspension, these tokens have experienced a 4.8% increase, trading at $2.41 on various cryptocurrency exchanges.

Kenya’s Capital Markets Authority (CMA) has also weighed in on the situation. In a “cautionary statement,” the authority clarified that neither the Worldcoin project nor its associated tokens are currently under its regulatory oversight.

The CMA emphasized the potential risks of fraudulent schemes within the crypto token market and expressed willingness to collaborate with Worldcoin through its regulatory sandbox.