Worldcoin, the cryptocurrency and “proof of personhood” startup co-founded by OpenAI’s Sam Altman, has been cleared to resume operations in Kenya. This decision comes nearly a year after the Kenyan government halted the startup’s activities over privacy and legal concerns.
The Directorate of Criminal Investigations (DCI) in Kenya has closed its investigation, which began shortly after Worldcoin’s launch in July last year, citing no need for further police action. However, the DCI has stipulated that Worldcoin must officially register its business, obtain the necessary licenses, and vet its vendors to ensure prudent operations moving forward.
Worldcoin controversy
Worldcoin’s operations sparked controversy almost immediately after its launch due to the use of iris-scanning technology for identity verification linked to cryptocurrency distribution. A parliamentary committee was set up to investigate the startup and found multiple violations of Kenyan laws related to data protection, consumer protection, and cybersecurity. The committee even described the operations as potential espionage and a threat to national sovereignty.
Despite the DCI’s clearance, the parliamentary committee had recommended a complete shutdown of Worldcoin’s operations in Kenya. The implications of this recommendation remain unclear as the startup plans to resume operations. Worldcoin’s legal and operational challenges are not confined to Kenya; the startup faces ongoing investigations in other countries, including Germany, South Korea, Spain, and Hong Kong.
Global scrutiny
The situation with Worldcoin highlights the challenges and potential risks associated with deploying advanced technological solutions in jurisdictions with evolving regulatory frameworks. It also underscores the global nature of such challenges, as different countries grapple with balancing innovation with consumer protection and national security.
![Worldcoin privacy warning](https://i0.wp.com/nosisnews.com/wp-content/uploads/2024/06/image-29.png?resize=784%2C571&ssl=1)
![Worldcoin privacy warning](https://i0.wp.com/nosisnews.com/wp-content/uploads/2024/06/image-29.png?resize=784%2C571&ssl=1)
Separately, back in April, Italy’s DPA issued a warning to the company to refrain from any launch at all or risk sanctions.
As Worldcoin navigates these challenges, the global response will likely influence how other tech startups approach the deployment of similar technologies in foreign markets. The outcome of ongoing investigations in Europe will be particularly significant, potentially setting precedents for how data protection and consumer privacy are handled in relation to new technologies.