Kenyan Parliament Urges Shutdown of Worldcoin Crypto Project Amid Regulatory Concerns

Quincy Cahilig, Tech Times 02 October 2023, 11:10 am

A Kenyan parliamentary panel has urged the country's IT regulator to shut down the Worldcoin cryptocurrency project until additional restrictions are established.

The Kenyan government had previously put the initiative on hold at the beginning of August because of privacy concerns around the scanning of individuals' iris in exchange for a digital ID, intended to create a new "identity and financial network."

Worldcoin has drawn criticism not just in Kenya but also in Britain, Germany, and France. Sam Altman, the CEO of OpenAI, co-founded Tools for Humanity, which launched it internationally. The project still has a virtual presence in Kenya that is reachable online despite its suspension.

According to a Reuters report, the 18-member Kenyan parliamentary panel has advised Kenya's communications authority to ban relevant IP addresses and stop Worldcoin's virtual platforms. It also requires Tools for Humanity Corp. and Tools for Humanity GmbH Germany (Worldcoin) to suspend their physical presence in Kenya until a legal framework for virtual assets and service providers is developed.

The committee has not provided any formal announcements to the Worldcoin press office. The panel's findings will eventually be delivered to the National Assembly for review and acceptance.

Authorities expressed worries about the project's strategy for seeking user permission, which entailed providing financial incentives, during the suspension in August. Long lines for iris scanning during registration prompted the parliamentary panel to suspect children were scanned due to a lack of age verification.

The panel has also urged Kenyan government agencies to create rules governing crypto assets and businesses offering crypto services. It has asked the police to investigate Tools for Humanity and take legal action. Moreover, Kenya's interior ministry underlined the necessity for governmental authorities to certify no public hazards in the project.

Over 2 Million Individuals Registered

Worldcoin's unique remuneration scheme and OpenAI CEO Sam Altman's reputation explain Kenya's thousands of Worldcoin registrations. More than 2 million people have registered for a World ID so far, as per a Bloomberg report.

Kenya's Capital Markets Authority warns that worldcoin commodities are unregulated and that over-the-counter crypto token fraud is possible.

According to the firm's website, "Worldcoin is designed to become the world's largest digital identity and financial network, giving ownership to everyone. Worldcoin aims to provide universal access to the global economy no matter your country or background, establishing a place for all of us to benefit in the age of AI."

Sam Altman expects that Worldcoin will aid in separating humans from machines. In addition, he says that although the details are not yet clear, it may eventually result in the adoption of a universal basic income for everyone.

Authorities Raise Privacy Concerns

According to Worldcoin, it doesn't save any data. Privacy experts are worried about the risk of private iris scan information getting into the wrong hands, though.

To comply with the Data Protection Act of 2019, the Office of the Data Protection Commissioner (ODPC) in Kenya has requested that users of Worldcoin exercise increased caution. The Kenyan Capital Markets Authority (CMA) also has advised Kenyans that Worldcoin is not authorized in their country and has voiced concerns over the current registration process.

According to Kenyan law, individuals have the right to stop the pointless gathering or dissemination of their personal information.

Digital rights lawyer Mercy Mutemi noted that Worldcoin can validate information without as much intrusion. She stated, "If the goal is to prove people are human, they can just show up. You don't need to go for the most invasive manner to prove people are human," as quoted by BBC News.