The Kenyan government has taken action to halt all local activities associated with altcoin and digital identity project Worldcoin. The decision to suspend was taken in conjunction with relevant government agencies investigating the potential risks to Kenyans due to the project’s data collection practices. Here are the details…
Kenya halts operations on altcoin project
Founded by OpenAI CEO Sam Altman, Worldcoin aims to address the growing concern about distinguishing humans from AI agents in an age where AI is evolving. To achieve this, the startup introduced a digital identity system based on proof of identity, using iris scans to assign unique identities to individuals, as we reported on cryptokoin.com. But Kenyan Minister of Homeland Security, Kithure Kindiki, voiced her reservations about the data collection process, particularly the collection of key identification information such as iris scanning in exchange for digital identification. In a statement posted on Facebook, the Minister announced the suspension. He stressed that relevant security, financial services and data protection agencies are investigating the authenticity and legality of Worldcoin’s activities.
“The government is concerned about the ongoing activities of an organization that calls itself ‘WORLD COIN’, which deals with the registration of citizens through the collection of eyeball/iris data,” said Minister Kindiki in an official statement. The suspension in Kenya follows similar scrutiny from European regulators, including the Bavarian data protection office. These regulators are currently investigating Worldcoin’s data processing applications. Worldcoin entered the market on July 24, 2023, after three years of development. Since its launch, users who scanned their irises have received WLD tokens. Despite the suspension and investigations, the token price has resisted, rising 1.9 percent on crypto exchanges to $2.38 over the past 24 hours.
There are concerns about the project
Worldcoin’s mission is based on the expectation that as AI technology evolves, it will become very difficult to distinguish between humans and online bots. To separate humans from artificial intelligence, the startup created a digital identity system based on proof of personality. Such a digital identity is created by scanning an individual’s iris and giving it a World ID. However, critics have raised concerns about the project’s data collection and registration processes in developing countries, citing potential abuse.
The Kenyan government’s move to suspend Worldcoin operations marks an important step forward. It is the first country to take such action as local agencies carry out extensive investigations. In response to the suspension decision, Worldcoin stated that they will fully cooperate with the investigations and investigations initiated by the Kenyan government and other European regulators. The company aims to ensure that data privacy and protection concerns are adequately addressed and that the project can continue with transparency and compliance in the future.
53588
