Crypto startup Worldcoin, co-founded by OpenAI’s Sam Altman, has received the green light to resume its iris-scanning operations in Kenya. The controversial project, which aims to create a global identity and financial network, was halted last year amid concerns over privacy and data protection.
A year-long investigation by Kenyan authorities has concluded with no further police action, allowing Worldcoin to proceed. However, the company must now comply with local regulations by registering its business, obtaining necessary licenses, and ensuring its vendors meet required standards.
The decision comes after intense scrutiny from Kenyan regulators, including a parliamentary committee that recommended a complete shutdown of the project. The committee raised concerns about data protection, consumer protection, and potential threats to national security.
“We are grateful for the DCI’s fair investigation and for the Director of Public Prosecutions’ determination to close the matter,” said Thomas Scott, chief legal officer, Tools for Humanity. “This welcome result is, however, not an end but a beginning. We will continue working with the Government of Kenya and others and we hope to resume World ID registration across the country soon. For today, we are just pleased to return our focus to advancing Worldcoin’s mission: creating opportunities for people in Kenya and elsewhere to participate in the global economy.”
While the Kenyan government has dropped its criminal investigation, Worldcoin still faces legal challenges in other countries, including Europe. Data protection authorities in Germany, Spain, and Portugal are investigating the company’s practices.
The resumption of Worldcoin’s operations in Kenya highlights the complex regulatory landscape for emerging technologies. As countries grapple with the rapid pace of innovation, the need for clear and adaptable regulations becomes increasingly apparent.
Worldcoin’s ability to overcome regulatory hurdles in Kenya could set a precedent for its expansion into other markets. However, the company will need to address ongoing concerns about privacy and data security to build trust with users and regulators alike.