Kenya has temporarily paused the Worldcoin cryptocurrency project, citing security concerns as the primary reason for the suspension. The country’s interior ministry announced the ban on local activities related to Worldcoin while government authorities conduct investigations into potential hazards to public safety.
The Worldcoin initiative, launched last week and spearheaded by OpenAI CEO Sam Altman, aimed to create a novel “identity and financial network.” Users were expected to provide iris scans in exchange for a digital ID, with some countries offering free cryptocurrencies as an additional incentive.
In response to the project’s launch, Interior Minister Kithure Kindiki issued a statement indicating that relevant security, financial services, and data protection agencies have initiated inquiries and investigations to verify the authenticity and legality of Worldcoin’s activities.
A representative from Worldcoin has yet to provide a comment on the situation.
Worldcoin’s data-gathering raises concern
The government of Kenya expressed concerns over Worldcoin’s actions, particularly regarding the company’s data-gathering practices. Minister Kindiki emphasized that anyone involved in such activities would face the consequences, although he did not disclose further details.
Despite the investigation, reports from Kenyan media outlets have revealed that Worldcoin has already garnered significant interest, attracting more than 350,000 new users who received free cryptocurrency tokens valued at approximately 7,000 Kenyan shillings (approximately $49.09).
Since the project’s release, people in various countries, including Kenya, Germany, Spain, and France, have been queuing up at registration locations to examine their eyes by a shiny spherical “orb” as part of the identity verification process.
As the investigation unfolds, the future of Worldcoin’s operations in Kenya remains uncertain. The outcome of the inquiries by government authorities and their evaluation of the potential security risks associated with the project will determine the project’s fate within the country.
This development in Kenya reflects the growing scrutiny of cryptocurrency projects and their potential implications on national security and privacy concerns. As the crypto industry continues to evolve, regulatory authorities worldwide are taking measures to ensure the safety and protection of their citizens in the face of innovative and sometimes controversial initiatives.
