Kenya drops probe into Worldcoin after 2023 suspension
![Kenya drops probe into Worldcoin after 2023 suspension Kenya drops probe into Worldcoin after 2023 suspension](https://citizentv.obs.af-south-1.myhuaweicloud.com/103378/conversions/Capture-og_image.webp)
A video screengrab of a Kenyan getting their eye scanned to register for Worldcoin at the KICC grounds on Tuesday, August 1, 2023.
Kenya has dropped the probe against Worldcoin,
the cryptocurrency project by U.S. artificial intelligence (AI) company OpenAI
whose operations the government suspended last year.
The crypto project co-founded by OpenAI CEO
Sam Altman was suspended in Kenya on August 2, 2023, over data security
concerns amid a hysterical uptake in the capital Nairobi.
Worldcoin representatives appeared before
Parliament for questioning about the security of the biodata the company was
collecting from Kenyans.
A June 14 letter from the Directorate of
Criminal Investigations (DCI) to Coulson Harney LLP, the project’s lawyers, says the Directorate of Public Prosecutions (DPP) had directed that
the case file be closed.
“The DCI expeditiously and objectively
investigated an array of allegations into the activities Worldcoin in Kenya in
2022/3 and touching on alleged unlawful collection and transfer of personal
sensitive data. The resultant investigation file was forwarded to the Office of
the Director of Public Prosecutions for an independent review and advice,” it
reads.
“Upon review of the file, the Director of
Public Prosecutions concurred and directed that the file be closed with no
further police action.”
Moving forward, the investigative agency
advised Worldcoin to ensure it registers with the Registrar of Business
Registry and acquire licensing from the Office of the Data Protection
Commission (ODPC) and the Communication Authority of Kenya (CAK).
“Ensure Intensive vetting and legal
contracting of all third-party vendors within the country,” added the DCI.
In December, government sources told
Citizen Digital that an agreement had been reached to allow Worldcoin to resume
Kenyan operations under new guidelines.
The Worldcoin project rolled out globally
on June 24, 2023.
But despite its ambitions of a
decentralised global currency, the project was met with privacy concerns and
questions about the security of the biodata the company was collecting from
Kenyans.
The verification process involved scanning eyeballs through an Orb in exchange for a digital identity called World
ID.
The concerns were heightened by the fact
that new members were getting 25 free cryptocurrency tokens known as WLD after
the verification, valued at Ksh.8,256 at the time.
The government stopped all activities
associated with the crypto project until relevant agencies certify the absence
of any security risks.
Following the Worldcoin's suspension, Alex
Blania, the project’s CEO who co-founded it with Altman, said they and Tools
For Humanity (TFH) were pausing World ID verifications in Kenya to address the
government’s concerns while optimistic about resuming operations in the
country.
TFH is the Germany-based global hardware
and software company which led the initial development of the Worldcoin
protocol.
“TFH has paused World ID verifications in
Kenya as we continue to work with local regulators to address their questions.
We apologize to everyone in Kenya for the delay,” Blania said last August.
“World ID is built for privacy. We look
forward to resuming operations while continuing global rollout.”
Interior Cabinet Secretary Kithure Kindiki
told the Senate last September that the government was conducting a forensic
analysis of the hardware components used to collect data from Kenyans for the
project.
The security minister said he had yet to be
convinced that Worldcoin activities were safe because the company was operating
without clearance from the government.
“Citizen data is a sovereignty issue. They
harvested data here operating outside the law. I know I run the risk of being
told I’m standing in the way of commerce but as a security manager, I need to
know who is behind any crypto the source of their investment and who is doing
what because if we allow anything that will harm the people of Kenya I will be
asked,” he said.
Tools For Humanity had just two weeks prior
revealed they had been scanning people’s irises in Nairobi and other Kenyan
urban centres since 2021 when they were piloting the project.
At the start of September, Worldcoin said
over 635,000 Kenyans had downloaded the crypto app, although 345,000 had not
yet verified their identities by scanning their irises.
Worldcoin also came under scrutiny in
Europe for running afoul of strict General Data Protection Regulations (GDPR)
in EU member states.
The United Kingdom’s Information Commission
Office last year said it would be “making enquiries” about Worldcoin, while
France's privacy watchdog CNIL said the legality of the project’s biometric
data collection "seems questionable."
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