A Kenyan parliamentary panel has called upon the country’s information technology regulator to suspend the operations of the cryptocurrency project Worldcoin within Kenya. The request comes as the panel seeks stricter regulations to govern such projects.
In early August, the Kenyan government suspended the Worldcoin project, citing privacy concerns. The controversy stemmed from the project’s practice of scanning users’ iris in exchange for a digital ID, which was used to establish a new “identity and financial network.”
Worldcoin, initiated by Tools for Humanity, a company co-founded by OpenAI CEO Sam Altman, has been rolled out in multiple countries worldwide. It also faced scrutiny in countries such as Britain, Germany, and France.
Despite the August suspension, Worldcoin still maintains a virtual presence in Kenya and remains accessible via the internet.
The parliamentary panel, comprised of 18 lawmakers, issued a report urging the Communications Authority of Kenya to take specific actions. It called for the “disabling of virtual platforms of Tools for Humanity Corp. and Tools for Humanity GmbH Germany (Worldcoin), including blacklisting the IP addresses of related websites.” Furthermore, the panel requested the suspension of the companies’ “physical presence in Kenya” until a comprehensive legal framework for the regulation of virtual assets and virtual service providers is established.
In response, Worldcoin’s press office stated that it had not received any official announcement directly from the Committee.
The panel’s report is expected to be presented to the National Assembly for consideration and adoption at a later date.
During the August suspension of data collection, authorities raised concerns about the project’s approach to obtaining consumer consent, which involved offering a monetary award of just over $50 at the time. Critics argued that this bordered on inducement.
The registration process for using the platform included long queues of individuals waiting to have their irises scanned. The parliamentary panel’s investigation revealed that Worldcoin may have scanned the eyes of minors since there was no age-verification mechanism in place during the exercise, as detailed in their report.
The panel also called upon government ministries to develop regulations for crypto assets and firms that offer crypto services. Additionally, it urged the police to investigate Tools for Humanity and take any necessary legal action in this matter.
The ongoing debate over privacy and regulation of cryptocurrency projects like Worldcoin underscores the growing importance of clear guidelines in the evolving digital financial landscape.
