The Kenyan government has taken action to suspend all activities related to the registration and distribution of Worldcoin, a newly launched cryptocurrency project. The government’s decision comes as a result of concerns over data privacy and the collection of iris data during the registration process.
Kithure Kindiki, Cabinet Secretary for the Interior and National Administration, stated that financial services and data protection agencies are currently investigating the authenticity and legality of Worldcoin’s registration activities. The government wants to ensure the safety and protection of the collected data, as an increasing number of Kenyans are participating in the registration process to receive free WLD tokens in exchange for their irises being scanned.
In order to prioritize public safety and address any potential risks, the Kenyan government has decided to suspend all Worldcoin activities until relevant public agencies certify the absence of such risks. Kindiki emphasized that enforcement actions will be taken against individuals or entities that fail to comply with the order.
Worldcoin, led by Sam Altman, CEO of OpenAI, aims to offer a privacy-preserving digital identity based on the concept of decentralized proof-of-personhood. However, regulators in various regions are concerned about the project’s privacy implications and have initiated their own investigations.
The project requires users to scan their irises using a biometric verification device called an Orb, which creates a unique identifier. Worldcoin asserts that it does not store any data locally and deletes it after verification. Currently, there are over 200 Orbs in circulation, with plans to release an additional 1,500 by the end of the year.
The suspension of Worldcoin activities in Kenya highlights the importance of data privacy and the need for transparent and secure financial transactions. It also raises questions about the balance between innovation and privacy concerns in the cryptocurrency space. As the investigations unfold, it remains to be seen how Worldcoin will address these privacy risks and regain the trust of regulators and users alike.
Disclaimer: This article is for informational purposes only and should not be considered as financial or investment advice. The content is solely the opinion of the author and does not necessarily represent the views of Crypto Time.
