The Kenyan Government Investigates Worldcoin
The Kenyan government has established a committee to investigate the operations of cryptocurrency firm Worldcoin. The committee was formed due to concerns that Worldcoin’s collection of biometric data does not comply with Kenya’s data privacy laws. As part of its process, Worldcoin requires users to provide iris scans in exchange for a digital ID and free Worldcoin tokens. The Joint Ad-hoc Committee, headed by Gabriel Tongoyo, will investigate the activities of Worldcoin and gather information from experts and witnesses, including the Central Bank of Kenya, the National Treasury, and the Ministry of Health. The committee has been given a limited time frame of 42 days to provide answers to the legislators.
Worldcoin Fails to Meet Privacy Laws
Worldcoin’s collection of biometric data in exchange for tokens did not meet regulatory requirements in Kenya. The disclosure of personal information should only occur in critical circumstances, according to Immaculate Kassait, the Data Commissioner for Kenya. The Capital Markets Authority also stated that Worldcoin operated without regulatory supervision, leading to skepticism among citizens about sharing their data. Due to security concerns, the Interior Cabinet Secretary ordered the suspension of Worldcoin’s operations in the country. A recent police raid on Worldcoin’s facility in Nairobi resulted in the seizure of documents and equipment for further investigation. Worldcoin has expressed its willingness to cooperate with authorities and outlined plans to restart operations with crowd-control measures in place.
Hot Take
The Kenyan government’s investigation into Worldcoin highlights the importance of data privacy and regulatory compliance in the cryptocurrency industry. While Worldcoin’s offering of free tokens may have attracted many users, the collection of biometric data without proper disclosure and regulatory oversight raises significant concerns. This case serves as a reminder that individuals and governments need to be cautious when engaging with cryptocurrency platforms, ensuring that their personal information is protected and that companies adhere to relevant laws and regulations.
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