Kenya Suspends Worldcoin Data Collection Due to Privacy and Security Concerns in Cryptocurrency

The Kenyan government has prohibited the Worldcoin cryptocurrency project from recruiting new customers while it conducts an investigation into data privacy and security concerns. The interior ministry of Kenya stated that the project must stop collecting user data due to various issues, including concerns regarding secure data storage that includes iris scans, the potential inducement of users through offering crypto in exchange for data, insufficient information on cybersecurity measures, and the potential risk of placing large amounts of private data into the hands of a private business. Worldcoin requires customers to undergo eyeball scanning to prove their identity and differentiate them from artificial intelligence systems. Kenyan citizens were offered free Worldcoin tokens, amounting to approximately 7,000 Kenyan shillings (£39), to encourage sign-ups. The project made a similar offer in other countries. Local media reports revealed that over 350,000 Kenyans had signed up for Worldcoin as of this week.
The Worldcoin project, co-founded by Sam Altman, the CEO of ChatGPT developer OpenAI, was launched last week. It requires users to provide their iris scans in exchange for a digital ID, which could potentially form the basis for a universal basic income funded by artificial intelligence, according to the co-founders. Kenya’s interior ministry announced on Wednesday that it had suspended the local activities of Worldcoin while government agencies assess potential risks to public safety. The Communications Authority of Kenya and the Office of the Data Protection Commissioner released a statement expressing concerns raised during a preliminary review of Worldcoin’s operations, including the potential inducement of consumers through monetary rewards. Similar concerns have been voiced by authorities in Germany, France, India, and the UK. The UK’s domestic data watchdog has stated that it will conduct further inquiries into the project. The Worldcoin Foundation, based in the Cayman Islands, expressed its willingness to work with authorities to enhance understanding of the privacy measures in place in Kenya and other locations.

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