The government of Kenya has suspended the activities of the new crypto project Worldcoin as officials assess potential risks to public safety.
WorldCoin, which launched on July 24, is a digital identification service for distinguishing real humans from artificial intelligence (AI) and bots. Its flagship tool, the Orb, is an iris-scanning device used to verify and log the identity of each individual. Participants then receive a World ID on the Worldcoin blockchain and a portion of the company’s own cryptocurrency.
Kenya Seeks Clarity on What Worldcoin Does With Data
But on August 2, the government of Kenya stopped Worldcoin’s activity in the country while it looked at how the company intends to use the data it gathers. Worldcoin maintains that iris scans are deleted after the person’s World ID is created.
“The government has suspended forthwith activities of Worldcoin and any other entity that may be similarly engaging the people of Kenya until relevant public agencies certify the absence of any risks to the general public,” Interior Secretary Kithure Kindiki said in a Wednesday statement.
In recent days, photos have emerged of Kenyans in long queues waiting to have their iris scanned by Worldcoin’s orb. The company has been heavily criticized for exploiting those in Third World countries by buying people’s biometric data on the cheap. The company pays Kenyans in tokens worth approximately 7,700 Kenyan shillings—around $54 USD.
According to the company’s official website, the project has registered over 2.1 million people in eight days. Worldcoin is also active in 120 countries, with 34 countries having hosted “Orb verifications.”
But as the sign-ups have mounted up, so has the concern from government officials. And not just in Kenya.
Worldcoin Launched to Heavy Criticism Last Month
Worldcoin launched to a barrage of criticism on July 24, with observers criticizing its tokenomics and ethical practices. At launch, market makers controlled 95% of the total circulating supply, distorting the market.
Others have highlighted the shortcomings of ID verification when second-hand World ID accounts sell for as low as $1 on Telegram.
Now, in Germany, the Bavarian State Office for Data Protection Supervision is investigating the crypto firm. Regulators have concerns over its use of sensitive biometric data.
In a July 2 statement seen by Reuters, Worldcoin said it will offer governments and other organizations the opportunity to utilize its iris-scanning and identity-verifying technology. Although this is unlikely to settle nerves.
In response to the issues raised in this story, Worldcoin sent a written statement to BeInCrypto. The company said that demand for its proof of personhood verification services has been “overwhelming” in Kenya. And that it has driven tens of thousands of people to wait in line for days to obtain a World ID.
The decision to pause verification services stems from caution and the need to alleviate crowd volume, the company said. It is only a temporary measure, Worldcoin insisted, adding:
“Worldcoin remains committed to providing an inclusive, privacy-preserving, decentralized on-ramp to the global digital economy and looks forward to resuming its services in Kenya while working closely with local regulators and other stakeholders.”
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
