A Kenyan parliamentary committee has demanded the country’s information technology regulator shut down operations of the cryptocurrency project Worldcoin within Kenya until stricter regulations are established. The government suspended the project in August due to privacy concerns over its practice of scanning users’ irises in exchange for a digital ID to create a new “identity and financial network.” Worldcoin, initiated in multiple countries globally by Tools for Humanity, a company co-founded by OpenAI CEO Sam Altman, faced scrutiny in the UK, Germany, and France as well.
Despite the August suspension, Worldcoin maintains a virtual presence in Kenya accessible via the internet. The parliamentary panel, consisting of 18 lawmakers, has urged the regulatory Communications Authority of Kenya to disable Worldcoin’s virtual platforms, including blacklisting related IP addresses. The panel also called for the suspension of the company’s physical presence in Kenya until a legal framework for regulating virtual assets and service providers is established.
Worldcoin’s press office stated that they had not received any official announcement directly from the committee. The panel’s report will be presented to the National Assembly for further consideration and adoption at a later date.
During the suspension in August, authorities criticized the project’s method of obtaining consumer consent, suggesting it bordered on inducement, as individuals had to queue up to have their irises scanned in exchange for a monetary award of just over $50. The parliamentary investigation revealed that Worldcoin may have scanned the eyes of minors, as there was no age-verification mechanism in place during the exercise. The panel also called on government ministries to develop regulations for crypto assets and firms offering crypto services and urged the police to investigate Tools for Humanity, taking necessary legal action.