Kenya Suspends World Coin

Kenyan activities of the Worldcoin cryptocurrency project have been suspended after the Kenyan government and cybersecurity experts raised concerns over the project which is expected to benefit millions of Kenyans.

Kenya's interior ministry said that the cryptocurrency project Worldcoin's local operations have been suspended to give government authorities time to investigate the project and see for possible threats to ensure the safety of the public.

The program, which began last week, was created by Sam Altman, CEO of OpenAI. Ever since the creation of this project, Worldcoin has been giving some country's users free cryptocurrencies as part of efforts to create a new "identity and financial network" In return, Kenyans will submit their iris scans to establish a digital ID.

“The Government is concerned by the ongoing activities of an organization calling itself ‘WORLD COIN’ which is involved in the registration of citizens through the collection of eyeball/iris data,”  stated Minister Kithure Kindiki in a statement.

Worldcoin is attempting to create a global identity system based on iris scans that may be used to establish an agent's humanity and uniqueness. According to the effort, this might be highly essential in a world where artificial intelligence agents are active in the economy.

However, the collection of biometric information and the registration procedure in developing countries have come under question, with accusations of exploitation leveled.

Many European regulatory organizations, including the Bavarian data protection authority that regulates the corporation, have initiated investigations into Worldcoin, according to a statement sent to CoinDesk. Kenya, on the other hand, is the first country to go a step further and shut down the firm completely while local authorities investigate.

Those who had their irises scanned have received WLD tokens since the project's launch last week. According to CoinMarketCap data, the token has climbed 4.8% in the last day to $2.41 on cryptocurrency exchanges.

Kenya's Capital Markets Authority issued a "cautionary statement" on Wednesday.

It stated in an email to CoinDesk that neither the project nor the tokens are regulated by the organization. The statement refers to "potential fraudulent schemes that may emerge in the over-the-counter market of crypto tokens." The CMA is willing to cooperate with the firm through its regulatory sandbox.

Everything You Need to Know About Kenya Data Policy

Anyone who serves as a data controller or processor must register with the data commissioner under the Data Protection Act 2021. The legislation requires data controllers and processors to handle data legally, limit data collecting, limit further data processing, and assure data quality. To protect personal data, they must build and maintain strong security procedures. 

Data controllers and processors are required by law to store personal data covered by the Act inside Kenya. The processing of sensitive personal data across borders is forbidden. 

However, there may be exceptions under certain situations, such as giving protections to the data commissioner, gaining express agreement from data subjects after advising them of potential risks, or where the transfer is required for contract performance. 

Exemptions from the Act's prohibitions are also granted in circumstances of national security, legal obligations, criminal prevention, apprehension, or prosecution. So yet, the data commissioner's office has not defined any of these exclusions, and our attempts to obtain clarification have proved futile.

Noncompliance with the Data Protection Act 2021 is punishable by a fine of up to KES 5 million ($35,000) or 1% of the undertaking's annual revenue, whichever is greater. Individuals might face a fine of up to KES 3 million ($21,000), 10 years in jail, or both. The legislation applies to all companies in Kenya that process the personal data of data subjects, regardless of location. 

Data subjects, including individuals who had their iris scanned, have the right to seek confirmation, the location of data processing, and the purpose of data processing. They can also request that their data be removed from the processors' systems.