A Kenyan parliamentary committee issued a stern call on Monday, urging the country’s information technology regulator to take immediate action and halt the operations of the cryptocurrency project known as Worldcoin within the nation. This call for suspension is contingent on the implementation of more rigorous regulatory measures.
Back in early August, the Kenyan government had already suspended the Worldcoin project, citing privacy concerns related to the project’s practice of scanning users’ irises in exchange for a digital ID, intended to establish a novel “identity and financial network.”
Worldcoin had been introduced in various countries across the globe through Tools for Humanity, a company co-founded by Sam Altman, the CEO of OpenAI. This cryptocurrency venture has also faced scrutiny in other countries, including Britain, Germany, and France.
Despite the suspension in August, Worldcoin still maintains a virtual presence within Kenya, accessible through the internet.
The parliamentary committee, comprised of 18 lawmakers, issued a comprehensive report, calling upon the regulatory body, the Communications Authority of Kenya, to “disable the virtual platforms of Tools for Humanity Corp and Tools for Humanity GmbH Germany [Worldcoin], including blacklisting the IP addresses of associated websites.” Furthermore, they demanded the suspension of the physical presence of these companies in Kenya, pending the establishment of a proper legal framework for regulating virtual assets and virtual service providers.
The committee’s report is set to be presented to the National Assembly for further consideration and potential adoption at a later date.
The suspension of data collection in August had raised concerns, as authorities deemed the project’s method of obtaining consumer consent, in exchange for a modest monetary incentive of just over $50 at the time, as potentially coercive. To register on the platform, individuals had to endure long queues for iris scanning. The parliamentary panel’s investigation revealed that Worldcoin may have scanned the eyes of minors, as there was no age-verification mechanism in place during the process, according to their report.
In addition to the regulatory actions recommended, the committee called upon government ministries to develop comprehensive regulations governing crypto assets and firms providing crypto services. They also urged the police to investigate Tools for Humanity and pursue any necessary legal actions.
Information for this story was found via Voice of America and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
