Kenya Halts WorldCoin Scans as Security, Privacy, and Financial Concerns Arise

Kenya, an early adopter of Worldcoin, the innovative startup aiming to forge a new global identity and financial network through iris scans and its unique cryptocurrency, has shifted its stance. Initially one of the largest markets for Worldcoin, Kenya has now taken steps to suspend Worldcoin enrollment in the country. 

This suspension comes as the Ministry of the Interior cites worries about the authenticity, legality, security, financial services, and data protection related to Worldcoin's activities. This move is aimed at ensuring public safety and the integrity of financial transactions.

From Bustling Venues to a Single Hub

Previously, Kenya boasted a significant presence of Worldcoin "Orb" venues, offering visitors the chance to verify their World IDs through the use of the company's innovative spherical iris-scanners. 

However, overwhelmed by a massive turnout, these venues consolidated their operations to a larger ground, the Kenyatta International Convention Centre (KICC). This shift highlights the demand and enthusiasm for Worldcoin in Kenya.

The suspension order raises questions about the impact on the circulation and trading of Worldcoin tokens in Kenya. These tokens have found their way into the grey market surrounding cryptocurrencies in emerging economies. Despite regulatory gaps, the coins are being traded, including exchanging them for the stablecoin USDT on crypto exchanges or converting them into cash through brokers. This unforeseen development drew the attention of government agencies.

Scrutiny and Concerns Surrounding Worldcoin

Worldcoin, co-founded by Sam Altman, has garnered significant attention and funding, valued at over $2 billion. The startup's focus on building a "proof-of-personhood" network involves registering "verified humans" through iris scans. To incentivize participation, Worldcoin offers "free" crypto tokens. The controversy lies in concerns about the exploitation of economically-disadvantaged individuals, as well as the creation of a biometric database. An investigation by MIT Review highlighted issues related to data collection and consent.

The suspension of Worldcoin enrollment aligns with global efforts to scrutinize the project's practices. The country's office of the Data Commissioner had already been assessing Worldcoin's operations for compliance with local laws. This increased attention comes alongside skepticism from peers in the technology industry, who have raised doubts about Worldcoin's practices and broader business ambitions.

While Kenya was one of the pioneers to pilot Worldcoin's registration service, it is now taking a more cautious approach, prioritizing public safety and compliance. With ongoing registration in various cities, Worldcoin continues its expansion, having enrolled a significant number of users in recent weeks. As the saga unfolds, the balance between innovation and responsibility remains a key consideration.