Worldcoin Resumes Iris-Scanning Operations in Kenya After Government Investigation
Worldcoin, the innovative crypto startup co-founded by Sam Altman of OpenAI, has received official approval to restart its iris-scanning and related operations in Kenya. This follows the conclusion of a year-long government investigation into privacy issues that had put the program on hold.
Kenya was one of the first countries to roll out Worldcoin's iris-scanning initiative, aimed at creating a new identity and cryptocurrency system. However, shortly after its launch in July 2022, the program faced regulatory scrutiny that led to its suspension.
On June 14, the Directorate of Criminal Investigations (DCI) sent a letter to Worldcoin’s legal team, stating that the investigation had been “closed with no further police action.” Despite this positive development, the DCI emphasized the need for Worldcoin to officially register its business, obtain necessary licenses, and conduct due diligence on its vendors to ensure responsible operations moving forward.
This announcement marks the end of a prolonged suspension for Worldcoin in Kenya, which came about due to concerns regarding the safety and legality of its security, financial services, and data protection measures. A parliamentary committee, established after the suspension, had recommended shutting down Worldcoin after uncovering various violations. The committee's findings indicated that both Worldcoin and its parent company, Tools for Humanity, had breached several Kenyan laws, including those related to data protection and consumer rights. They even claimed the company's activities posed a threat to national security.
Furthermore, it was found that neither Worldcoin nor its U.S. and German subsidiaries were registered entities in Kenya. Their local partners also failed to register as data processors or controllers, despite handling data for the project. Additionally, Worldcoin did not secure approval from the ICT regulatory body to utilize its eyeball-scanning technology, referred to as “Orbs,” which were classified as telecommunications devices.
The implications of the parliamentary committee's recommendation for a shutdown remain uncertain.
Thomas Scott, Chief Legal Officer of Tools for Humanity, expressed gratitude for the DCI’s thorough investigation and the decision to close the case. “This favorable outcome marks not an end, but a new beginning. We look forward to collaborating with the Kenyan government and hope to resume World ID registration throughout the country soon. For now, we are eager to refocus on Worldcoin’s mission: empowering individuals in Kenya and beyond to engage in the global economy.”
It's crucial to note that Worldcoin and Tools for Humanity are still under investigation in several other countries. Currently, Germany is the only European nation listing the “Orbs” as available. However, the Bavarian data protection authority (DPA) is investigating complaints against Worldcoin, with a ruling expected soon. Meanwhile, in Spain, Worldcoin paused operations earlier this year due to a DPA order and will not resume until the Bavarian investigation concludes.
Portugal's DPA has also launched a separate inquiry into the company's U.S. operations and has prohibited Worldcoin from functioning in the country for the time being. In April, Italy’s DPA warned the company to refrain from launching any services or face penalties.
This ongoing situation illustrates the challenges associated with emerging technologies like Worldcoin’s system and highlights the current gap in regulatory preparedness across various jurisdictions. While the parliamentary committee urged Kenya to dismantle Worldcoin’s presence, including blacklisting its IP addresses, the Kenyan government has also begun developing more structured regulations for crypto startups. A multi-agency technical team is currently working on establishing a regulatory framework for virtual asset use, aiming to better manage initiatives like Worldcoin.
Keywords: Worldcoin, iris-scanning, crypto, Kenya, data protection, regulatory compliance, cryptocurrency, Tools for Humanity.
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