Worldcoin, a cryptocurrency initiative aimed at creating a universal basic income using blockchain technology, has resumed its operations in Kenya following a temporary suspension due to regulatory scrutiny. The company, which has been working to onboard users globally by offering free digital tokens in exchange for biometric data, faced a halt in its activities in Kenya amid concerns over data privacy and regulatory compliance.
The suspension in August 2023 came after Kenya’s Office of the Data Protection Commissioner (ODPC) raised issues about the collection and handling of biometric data by Worldcoin. The regulatory body expressed concerns over the potential misuse of sensitive personal information and the lack of transparency in the company’s data practices.
In response to these concerns, Worldcoin has made several adjustments to its operations to align with Kenya’s data protection laws. The company has enhanced its data security measures, improved transparency in its data collection processes, and ensured compliance with local regulations. These steps have been crucial in securing the necessary approvals to resume its activities in the country.
“After constructive dialogue with the Kenyan authorities and making significant improvements to our data protection measures, we are pleased to announce that Worldcoin is resuming its operations in Kenya,” said a spokesperson for Worldcoin. “We remain committed to safeguarding the privacy of our users and ensuring that our operations comply with all local regulatory requirements.”
Worldcoin’s resumption of operations in Kenya is significant as the country has been a key market for the cryptocurrency project. Kenya’s tech-savvy population and its openness to digital innovations have made it an attractive location for Worldcoin’s ambitious plans to create a global digital currency ecosystem.
Worldcoin’s experience in Kenya has been turbulent. Launched in August 2023, the initiative sought to create a universal digital identity and financial network by collecting iris scans. Founded by U.S. tech entrepreneur Sam Altman, the leader of OpenAI and the well-known ChatGPT generative AI model, Worldcoin offers free crypto tokens to participants in exchange for their iris scans.
The project, co-founded by Sam Altman, CEO of OpenAI, and Alex Blania, aims to distribute its digital currency to every person on Earth by scanning their irises to create a unique digital identity. This biometric verification is intended to ensure that each person can only claim their share of Worldcoin once, thereby preventing fraud and ensuring fair distribution.
Despite the regulatory hurdles, Worldcoin has seen substantial interest in Kenya, with thousands of people signing up to participate in the project. The company’s approach to distributing digital tokens has been particularly appealing in regions where access to traditional banking services is limited, providing an alternative means of financial inclusion.
DCI director Hillary Mutai signed a letter on June 14, stating that the department had thoroughly investigated multiple allegations against Worldcoin’s operations in Kenya, including claims of illegal collection and transfer of sensitive personal data. The findings were then sent to the Director of Public Prosecutions for independent review and guidance, as detailed in the letter.
“Upon review of the file, the Director of Public Prosecutions concurred and directed that the file be closed with no further police action,” it added.
However, the project has not been without its critics. Privacy advocates have raised concerns about the collection and storage of biometric data, questioning the long-term implications for user privacy and data security. In response, Worldcoin has reiterated its commitment to protecting user data and has implemented stringent measures to safeguard the information it collects.
“We are grateful for the DCI’s fair investigation and for the Director of Public Prosecutions’ determination to close the matter,” Thomas Scott, chief legal officer, Tools for Humanity, said in a statement. “This welcome result is, however, not an end but a beginning.”
The resumption of Worldcoin’s operations in Kenya is likely to reignite discussions about the role of digital currencies in financial inclusion and the balance between innovation and regulation. As the project continues to expand its reach, it will be closely watched by both supporters and skeptics.
“Kenya remains a critical part of our mission to create a more inclusive global economy,” the Worldcoin spokesperson added. “We look forward to continuing our work in the country and contributing to the development of a secure and equitable digital financial system.”
As Worldcoin moves forward, its experiences in Kenya could serve as a blueprint for navigating regulatory landscapes in other markets, highlighting the importance of collaboration between innovative tech companies and regulatory bodies to achieve common goals.