The Kenyan government has issued an order to the cryptocurrency project Worldcoin, instructing them to halt the registration of new users due to data privacy concerns. Worldcoin, a venture founded by US tech entrepreneur Sam Altman, has been offering free crypto tokens to individuals who consent to have their eyeballs scanned.
In response to this offer, thousands of Kenyans have been lining up at registration centers to avail themselves of the currency, which is valued at approximately $49 (£39).
However, the Kenyan government has expressed caution and urged citizens to be wary of sharing their personal data with private companies. The Communications Authority of Kenya raised specific concerns, including the storage of biometric data, the exchange of money for data, and the potential risk of such vast amounts of data being in the hands of a private entity.
In light of these concerns, the Ministry of the Interior has launched an investigation into Worldcoin’s operations. Additionally, they have called upon security services and data protection agencies to ascertain the legitimacy and legality of Worldcoin’s activities in the country.
Many people were barred from participating in the registration process on Wednesday at one of the pop-up registration centers in Nairobi, the country’s capital, since the massive crowd was deemed a “security risk.”
“I’ve been coming here almost three days to line up and register. I want to register because I’m jobless and I’m broke, that’s why I’m here,” Webster Musa told the BBC.
“I came here yesterday. I waited until my phone died. So I came again today but I’ve missed the registration again. I really like Worldcoin because of the money. I’m not worried about the data being taken. As long as the money comes,” added Dickson Muli.
Worldcoin says it cannot say how many people have had their eyeballs scanned in Kenya.
It claims to be creating a new global “identity and financial network”.
“We are creating the world’s largest identity and financial network as a public utility, giving ownership to everyone. And establishing universal access to the global economy regardless of country or background,” a statement on the Worldcoin website reads.
The endeavor, according to Mr. Altman, who established Open AI and created the chatbot ChatGPT, aims to determine if a person is human or a robot. He adds that although it is unclear how, this might result in everyone receiving a universal basic income.
The company maintains that it does not store any data. However, privacy experts express concerns that sensitive data collected from iris scanning could potentially fall into the wrong hands.
The Office of the Data Protection Commissioner (ODPC) in Kenya has urged the public to exercise heightened vigilance when using Worldcoin’s services, emphasizing the need for the company to demonstrate proper safeguards in accordance with the Data Protection Act 2019.
The Kenyan Capital Markets Authority (CMA) also voiced its worries regarding the ongoing registration process and informed Kenyans that Worldcoin is not regulated in the country.
According to Kenyan law, individuals have the right not to have their personal information unnecessarily requested or disclosed.
Mercy Mutemi, a digital rights lawyer, expressed that there are less intrusive methods to obtain the information that Worldcoin seeks. She suggested that simply proving one’s human identity could be achieved without resorting to such invasive measures.
Worldcoin explained to the BBC that it chose Kenya as its first African launch country due to the thriving tech space in the region and the substantial number of Kenyans already engaged in cryptocurrency trading, totaling more than four million individuals.
The platform has also been introduced in several other countries, including Indonesia, France, Japan, Germany, Spain, and the UK. Data protection authorities in some of these countries have already confirmed that they are investigating Worldcoin’s operations.