Kenya suspends crypto project Worldcoin over safety concerns

Kenya’s interior ministry said on Wednesday that it had suspended the local activities of the cryptocurrency project Worldcoin, while government agencies assess potential risks to public safety. This announcement comes after the country’s regulatory authority recently urged people to be extra cautious when interfacing with Worldcoin.

The project founded by OpenAI CEO Sam Altman launched last week. It requires users to give their iris scans in exchange for a digital ID, and in some countries, users also get free cryptocurrency as part of plans to create a new “identity and financial network”.

Relevant security, financial service and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities, and the safety and protection of the data being harvested, and how the harvesters intend to use the data.

Kithure Kindiki, Interior Minister

Kindiki said the government was concerned with Worldcoin’s activities, and agencies would probe how it intends to use the data it gathers. He said action would be taken against anyone who engages with its activities, without elaborating.

Local media have reported that more than 350,000 Kenyans had signed up for Worldcoin as of Tuesday, in exchange for free cryptocurrency tokens worth around 7,000 Kenyan shillings ($49.09).

Kenya was one of the first countries where Worldcoin, the controversial startup that aims to create a new “human identity and financial network” through eye scans and its own cryptocurrency, launched sign-ups and as of this week, it was one of the biggest markets for take-up.

Since its launch, people around the world including in Kenya, Germany, Spain, and France have been flocking to registration sites to get their eyes scanned by a shiny spherical “orb”. The project has also come under scrutiny in Britain, Germany, and France.

Worldcoin registration is currently ongoing in 35 cities, and the company is on its way to crossing 3 million users, after enrolling over half a million people in the last seven days.