Sam Altman-owned Worldcoin is facing a one-year suspension of its operations in Kenya, as recommended by a multi-agency team.
The suspension comes in response to concerns over data collection practices by Tools for Humanity, a software and hardware development company that develops tools to support the Worldcoin protocol.
Data Commissioner, Immaculate Kassait declared that the freeze on data collection from Kenyans will persist until specific conditions are met.
Ms Kassait outlined the conditions for Worldcoin to resume operations in Kenya, including undergoing a security audit, granting government access to data, registering with the Business Registration Services, and establishing a local representative.
“Additionally, the company must Conduct a Data Protection Impact Assessment (DPIA) and improve transparency in data storage and consent processes,” the Data Commissioner stated.
As part of the recommendations, the licenses of related companies have been revoked and Worldcoin operators are urged to seek approval from the Capital Markets Authority (CMA) for testing their products, solutions, and services before launching them in the Kenyan market.
This investigation involved collaboration between the Office of Data Protection Commissioner (ODPC), the Communications Authority of Kenya (CAK), the Central Bank of Kenya (CBK), the Ministry of Information, Communication, Technology (ICT) and Digital Economy; and the National Computer and Cybercrime Coordination Committee (NC4).
To further impact Worldcoin, all WorldApps in the Kenyan region are to be removed from App stores for one year until the company’s approval is secured.
Kenya is a significant global market for cryptocurrency, with Worldcoin reporting over 600,000 registered users out of a total of 2.2 million worldwide.
The task force has also empowered the ODPC to impose administrative fines on companies engaged in data collection activities that pose threats to national security and the economy.
Additionally, the Kenya Revenue Authority (KRA) is tasked with monitoring identified companies for income tax compliance related to cryptocurrency income under the Finance Act, of 2023.
Furthermore, the Attorney General, CMA and CBK are responsible for spearheading the regulation of digital assets and cryptocurrency.
The recommendations were formulated based on findings that the consent obtained from Kenyan citizens was insufficient and did not align with the provisions of the Data Protection Act, with data collection purposes ranging from World ID provision to machine learning model development and testing.
Recently, Worldcoin refuted claims that it is primarily a data collection entity.
Worldcoin’s Chief Executive Officer (CEO), Alex Blania, clarified to the National Assembly Ad Hoc Committee that their core mission is not data mining or data selling, but rather authentication of human identity and unique categorization.
Mr. Blania faced numerous questions from the committee and emphasized that Worldcoin is not licensed to operate in Kenya due to uncertainties regarding data control regulations.
He assured the committee that they aim to enhance privacy and protect user data, rather than harvesting it.
Furthermore, Blania addressed allegations of coercing Kenyans to undergo iris scanning by offering them a token payment of Sh7,500.
Worldcoin defended this payment, characterizing it as a standard incentive similar to what other companies like PayPal might provide.
Also recently, Health Cabinet Secretary Susan Nakumicha voiced concerns about potential complications arising from the World Coin scanners.
She suggested that those who underwent the eye-scanning procedure should promptly seek medical attention due to potential risks.
Additionally, the Health CS stated that the government is dedicated to monitoring the health of individuals who have registered for this process.
Worldcoin, introduced on July 24, offered individuals the opportunity to receive free money in exchange for having their eyes scanned using a device known as Orb.
This scan captures distinct biometric identifiers. The founder, Sam Altman, asserts that Worldcoin’s objective is to establish a digital World ID that distinguishes humans from artificial intelligence.
