Kenya Halts Worldcoin’s Crypto Project Amid Safety Concerns

The Kenyan interior ministry announced on Wednesday (August 3, 2023) that it has suspended the local operations of the cryptocurrency project Worldcoin while government agencies conduct assessments to evaluate potential risks to public safety.

Worldcoin, founded by OpenAI CEO Sam Altman, was launched last week and requires users to provide their iris scans in exchange for a digital ID. Additionally, in some countries, users receive free cryptocurrency as part of the project’s aim to create a new “identity and financial network.”

Interior Minister Kithure Kindiki stated in a release, “Relevant security, financial services, and data protection agencies have initiated inquiries and investigations to ascertain the authenticity and legality of the aforementioned activities.”

Preliminary reviews of Worldcoin’s operations have raised concerns, with the Communications Authority of Kenya and the Office of the Data Protection Commissioner expressing issues, including potential inducement related to obtaining consumer consent in return for a monetary award.

The Worldcoin Foundation, based in the Cayman Islands, stated that it would use the suspension period to collaborate with authorities and enhance their understanding of the privacy measures in place in Kenya and other locations where the project operates.

“Worldcoin remains committed to providing an inclusive, privacy-preserving, decentralized on-ramp to the global digital economy and looks forward to resuming its services in Kenya while working closely with local regulators and other stakeholders,” the foundation said in a statement.

Kindiki expressed the government’s concerns regarding Worldcoin’s activities and emphasized that agencies would investigate how the data collected by the project will be used. He also warned of actions against individuals engaging with the project, without providing further details.

Local media reported that over 350,000 Kenyans had signed up for Worldcoin as of Tuesday, receiving free cryptocurrency tokens worth approximately 7,000 Kenyan shillings ($49).

Since its launch, the project has attracted interest from individuals in various countries, including Kenya, Germany, Spain, and France, who have flocked to registration sites to have their eyes scanned by a shiny spherical “orb.”

Furthermore, the project has faced scrutiny in Britain, Germany, and France.