Worldcoin Suffers Major Setback, Gets Kicked Out of Kenya

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Worldcoin, the identity-verification crypto initiative co-founded by OpenAI’s Sam Altman, faces a significant roadblock as the Kenyan government suspends its operations. 

The project, known for its unique utilization of iris scan technology for identity authentication and cryptocurrency distribution, has swiftly become popular in Kenya, with hundreds of thousands of customers already enlisted. But the suspension in the nation, announced today, leaves many questions unanswered and the future of the project uncertain.

A Concern for Personal Security

Kenya’s Ministry of the Interior announced its decision citing concerns regarding Worldcoin’s collection of eyeball and iris data from citizens. The government has paused all activities associated with Worldcoin until public agencies can determine that there are no risks to the general populace.

This abrupt halt in operations is sure to affect the company’s current efforts in extending its reach worldwide. Worldcoin has not only made waves as a standard cryptocurrency but also with its iris-scanning technology. 

The scans are part of a broader identity verification process, and customers who submit to them can claim a portion of Worldcoin’s recently launched WLD token. This inventive approach attracted many Kenyans, with long lines forming at shopping centers to partake in the iris scans.

The suspension comes at a time when the Worldcoin project was enjoying substantial popularity in Kenya. Crypto companies like Nuzo cashed in on Worldcoin’s fame, offering conversion services for the tokens. Moreover, the World App, a cryptocurrency wallet explicitly designed for Worldcoin, rapidly climbed to the top of the Kenyan Play Store’s download charts.

Legally Registered but Suspended

Though Worldcoin had legal permission to collect private data under its parent company, Tools for Humanity GmbH, the unexpected suspension raises questions about adherence to the Data Protection Act 2021.

The act dictates stringent requirements on data collection, further processing restrictions, quality assurance, and robust security measures. Moreover, the law mandates the storage of personal data within Kenya and sets specific conditions for cross-border processing.