Nairobi, Kenya – The Kenyan government has taken a decisive step to halt the registration of new users for the cryptocurrency project Worldcoin, founded by US tech entrepreneur Sam Altman. The government cited data privacy concerns as the primary reason for its intervention, urging citizens to exercise caution when sharing personal information with private companies.
Worldcoin, a venture offering free crypto tokens to individuals who consent to have their irises scanned, has drawn substantial attention in Kenya. Thousands of Kenyans have lined up at registration centers this week, hoping to secure approximately $49 (£39) worth of the digital currency.
The Communications Authority of Kenya, in a formal statement, outlined its apprehensions about the project:
- Biometric Data Storage: The manner in which biometric data is stored raised concerns among regulatory authorities.
- Monetary Incentive for Data: Offering monetary rewards in exchange for personal data was flagged as a significant privacy issue.
- Data Control by Private Entity: Entrusting vast amounts of data to a private enterprise prompted unease among officials.
The Ministry of Interior has initiated an inquiry into Worldcoin’s operations, enlisting the support of security agencies and data protection bodies to determine its legitimacy and adherence to Kenyan regulations.
Responding to the government’s action, Worldcoin released a statement on Thursday outlining its intention to collaborate with authorities and implement crowd-control measures before resuming its registration process. The company emphasized its commitment to comply with Kenyan laws and regulations.
In a notable incident at a registration center in Nairobi, a large gathering of hopeful registrants was deemed a “security risk,” leading to some individuals being locked out of the process. Despite the setbacks, many Kenyans expressed their eagerness to join the Worldcoin initiative, primarily motivated by financial considerations.
“I’ve been coming here almost three days to line up and register. I want to register because I’m jobless and I’m broke, that’s why I’m here,” said Webster Musa, a hopeful registrant.
While Worldcoin asserts that no data is stored, privacy experts remain concerned about the potential misuse of sensitive biometric information acquired through iris scans.
Kenya’s Office of the Data Protection Commissioner (ODPC) issued a call for heightened vigilance among the public, emphasizing the need for strict adherence to data protection laws during the Worldcoin registration process.
The Kenyan Capital Markets Authority (CMA) also weighed in, expressing apprehension over the ongoing registration. The CMA clarified that Worldcoin is not currently regulated within Kenya’s jurisdiction.
Digital rights lawyer Mercy Mutemi highlighted less intrusive alternatives for achieving Worldcoin’s objectives, suggesting that a simpler approach could suffice to verify users’ humanity.
Amid the ongoing scrutiny, Worldcoin defended its choice of Kenya as the initial African launchpad for its platform, citing the country’s burgeoning tech landscape and its substantial crypto trading community. The project has also expanded its reach to various countries, including Indonesia, France, Japan, Germany, Spain, and the UK, with data protection authorities in some of these nations already investigating its operations.
