The Worldcoin cryptocurrency project’s local operations have been put on hold, according to Kenya’s interior ministry, while authorities evaluate the possible risks to the public’s safety.
Sam Altman, the CEO of OpenAI, founded the initiative, which debuted last week. In some countries, users also receive free cryptocurrencies as part of efforts to establish a new “identity and financial network” in exchange for providing their iris scans for the purpose of obtaining a digital ID.
The Communications Authority of Kenya and the Office of the Data Protection Commissioner stated that a preliminary investigation of Worldcoin’s operations had shown issues, including the possibility that getting customer agreement in exchange for a financial reward amounted to enticement.
Interior minister Kithure Kindiki issued a statement stating that “relevant security, financial services, and data protection agencies have initiated inquiries and investigations to establish the authenticity and legality of the aforesaid activities.”
The Cayman Islands-based Worldcoin Foundation announced it will use the time of the suspension to cooperate with the relevant authorities to improve understanding of the privacy protections it has in place in Kenya and anywhere it has a presence.
Worldcoin released a statement saying that it “remains committed to providing an inclusive, privacy-preserving, decentralized on-ramp to the global digital economy” and that it “looks forward to resuming its services in Kenya while working closely with local regulators and other stakeholders.”
Kindiki claimed that the government was concerned about Worldcoin’s operations and that agencies would look into how the company planned to use the information it collects. Without going into further detail, he stated that anyone who participates in its operations would face punishment.
People have flocked to registration sites all around the world, including in Kenya, Germany, Spain, and France, to have their eyes scanned by a glittering, spherical “orb” since the program’s introduction.
Additionally, the initiative has drawn criticism in France, Germany, and Britain.
More than 350,000 Kenyans enrolled for Worldcoin, according to local media, in exchange for free cryptocurrency tokens worth about 7,000 Kenyan shillings ($49).
Read more on Tech Gist Africa:
The potential of blockchain and cryptocurrency in Africa
South African cryptocurrency platforms must be regulated by 2023
Rwanda is the latest African nation to ban its banks from processing cryptocurrency transactions
Comments 2