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Crypto: Worldcoin Associates Barred From Leaving Kenya

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First with the News

Crypto: Worldcoin Associates Barred From Leaving Kenya

August 3, 2023
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By Ebi Kesiena

Kenyan government has barred individuals linked to activities of Worldcoin from leaving the country pending the conclusion of investigations into the crypto firm’s operations in Kenya.

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Interior Cabinet Secretary Kithure Kindiki said on Thursday that the Directorate of Criminal Investigations has since Wednesday been interrogating two individuals.

The investigations, Kindiki noted, seek to establish the authenticity and legality of the cryptocurrency company’s activities in Kenya, the safety and protection of the data harvested and how the firm intends to use the data.

The project founded by OpenAI CEO Sam Altman launched last week requires users to give their iris (eyes) scans in exchange for a digital ID, and in some countries, users also get free cryptocurrency as part of plans to create a new “identity and financial network”.

“As a precautionary measure, the Immigration authorities have been directed to ensure that no persons whether Kenyan or foreign nationals associated with this entity leaves Kenya without the clearance of the Director of Criminal Investigations who is in charge of the ongoing investigations,” Kindiki said.

According to the CS, preliminary investigations indicate that Worldcoin procured the services of a company in Kenya called Sense Marketing to run the registration exercise which has since been suspended.

Kindiki told the lawmakers that Worldcoin is not licensed to operate in Kenya although it holds a certificate of registration for data collection.

He said the certificate is only one of the compliance requirements but is not a valid license for the entity to operate in Kenya.

Raising concerns about activities of Worldcoin

Kindiki said the government was concerned with Worldcoin’s activities, and agencies would probe how it intends to use the data it gathers. He said action would be taken against anyone who engages with its activities, without elaborating.

Local media have reported that more than 350,000 Kenyans had signed up for Worldcoin as of Tuesday, in exchange for free cryptocurrency tokens worth around 7,000 Kenyan shillings ($49).

Since its launch, people around the world including in Kenya, Germany, Spain and France have been flocking to registration sites to get their eyes scanned by a shiny spherical “orb”.

The project has also come under scrutiny in Britain, Germany and France.

However, Worldcoin Foundation, a Cayman Islands-based entity, said it would take the time of suspension to work with authorities to boost understanding of privacy measures it has in place in Kenya and elsewhere it has a presence.

“Worldcoin remains committed to providing an inclusive, privacy-preserving, decentralised 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,” it said in a statement.

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