The Kenyan government has announced the suspension of Worldcoin, a cryptocurrency that uses iris recognition for verification. The move comes as the Ministry of Home Affairs investigates the security and protection of data collected by the company. European regulators, particularly in France and Germany, are also looking into the Worldcoin system, which was launched by OpenAI boss Sam Altman in Germany in June.
Worldcoin aims to be a blockchain-based digital passport, allowing users to prove their identity online without disclosing personal data. To obtain this digital identity, users must undergo an iris scan using Worldcoin’s biometric device called the “orb”. However, amidst concerns about the collection of iris data, the Kenyan government has temporarily suspended Worldcoin activities, pending clearance from relevant government agencies.
Kenya, grappling with persistent inflation, has witnessed considerable interest in Worldcoin. In Nairobi, thousands of people queued up in shopping malls and the main conference center to undergo iris scans, receiving 7,000 shillings (approximately 45 euros) in virtual currency. Many participants immediately sold their tokens.
The government justified the suspension by stating it was concerned about Worldcoin’s involvement in collecting citizen data through iris scanning. Investigations will focus on determining the authenticity and legality of Worldcoin’s activities, as well as the security, protection, and intended use of the data collected.
Worldcoin has yet to respond to the suspension. The cryptocurrency is already facing scrutiny from European regulators and is not yet available in the United States, where authorities are working on regulating the sector more effectively.
Worldcoin underwent three years of development, and two million people signed up for the test phase, aiming to acquire a digital passport known as “World ID”. However, in April, BuzzFeed reported on the dissatisfaction of some participants who felt deceived by the company’s promises after agreeing to iris scans. Worldcoin co-founder Alex Blania acknowledged there may have been lapses in communication in certain cases.
Worldcoin plans to deploy approximately 1,500 orbs worldwide to facilitate the registration of millions of additional users, according to information provided on the Worldcoin website. The value of the Worldcoin token initially stood at $1.70, but it experienced a surge to $3.58 before settling at $2.37, as reported by CoinMarketCap.
As investigations into Worldcoin continue, the Kenyan government remains dedicated to ensuring the security and privacy of its citizens’ data. The outcome of these investigations will shape the future of Worldcoin in the country and may have implications for cryptocurrency regulation more broadly.
