Kenyan authorities have accused Worldcoin of engaging in acts of espionage and posing a threat to the country’s statehood. The accusations come as a result of an ongoing investigation by Kenya’s Ad hoc committee, which was initiated after concerns were raised by the public regarding Worldcoin’s activities, as reported by local media. Worldcoin had faced scrutiny for its alleged data mining practices, where it is said to have collected data from Kenyan citizens by scanning their irises in exchange for cryptocurrency tokens. This controversial operation was said to have taken place in 30 locations across Nairobi starting in May 2021. As a result, the Kenyan government suspended Worldcoin’s operations in August of this year.
In response to the accusations, the committee, led by Narok West MP Gabriel Tongoyo, has called upon the Directorate of Criminal Investigations to conduct a thorough investigation into two foreign companies associated with Worldcoin: Tools for Humanity (TFH) Corp and Tools for Humanity (TFH) Gmbh. These companies are suspected of operating illegally within Kenya and violating various Kenyan laws, including the Data Protection Act, Consumer Protection Act, and Computer Misuse and Cybercrimes Act. However, the Business Registration Services database of registered businesses or companies in Kenya does not list either of these foreign entities, raising questions about their legal authorization to conduct business within the country. It is also worth noting that Worldcoin’s application for registration as a data controller came a year after it had already started its operations in Kenya, which is in violation of the Data Protection Act of 2019.
One of the main concerns surrounding Worldcoin’s activities is the transmission of real-time iris images, which are converted into digital code and sent to the company’s third-party servers located overseas. Worldcoin claims that the collected data is securely stored in Amazon Web Services based in South Africa, but doubts remain about the ability to retract and delete this data when necessary. Furthermore, questions have been raised about whether the transfer of personal data outside Kenya complies with Section 48 of the Data Protection Act. It has been revealed that approximately 350,000 Kenyans had registered with Worldcoin by the time the government suspended its activities on August 2, 2023.
Despite facing regulatory pushback, Worldcoin continues to attract a record level of new sign-ups from around the world. This ongoing investigation raises important questions about data privacy and the legality of Worldcoin’s operations in Kenya. The outcome of the investigation will likely have significant implications not only for Worldcoin but also for the wider cryptocurrency industry in Kenya and beyond.
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The controversy surrounding Worldcoin highlights the need for robust data protection laws and regulations. It serves as a reminder that individuals must remain vigilant when it comes to sharing their personal data, especially with emerging technologies and platforms. Governments and regulatory bodies also play a vital role in ensuring that companies operating in their jurisdictions adhere to established laws and guidelines to protect the privacy and security of their citizens.
In conclusion, the accusations against Worldcoin by Kenyan authorities raise serious concerns about the company’s activities and their potential impact on the country’s statehood. The ongoing investigation into Worldcoin’s operations, as well as its parent company and associated entities, aims to shed light on the legality and compliance of their actions in Kenya. This case underscores the importance of data protection and privacy in the digital age and highlights the need for strong and enforceable regulations in the cryptocurrency industry.
