Investigations by Kenyan authorities against Worldcoin have been halted, allowing the organization to restart its operations.
Worldcoin Resumes Operations in Kenya Under Enhanced Regulatory Scrutiny
After a tumultuous period of investigations and suspensions, Worldcoin, a decentralized ID protocol, has been cleared to resume operations in Kenya. The news was reported by Reuters and follows an agreement reached six months ago.
The resumption of Worldcoin's operations in Kenya was under new guidelines, according to an undisclosed government official. However, the specifics of these new guidelines have not been made public yet.
Last year, Worldcoin went live in Nairobi, Kenya despite concerns about its privacy and the security of the data it collects from subscribers. These concerns led to a temporary halt in the company's operations in 2023, as the Kenyan government launched an inter-agency investigation against Worldcoin.
In a parliamentary hearing, Kenyan legislators accused Worldcoin of taking advantage of the limitations of Kenyan laws to operate without proper permission. The Kenyan police even raided Worldcoin's warehouse and confiscated several pieces of equipment. The company's licenses were revoked, and a parliamentary committee recommended the company's shutdown and called for legal action against it.
However, it seems that Worldcoin has managed to overcome these concerns and avoid legal proceedings in Kenya. It is unclear how the company has achieved this, but it is likely that it has adapted to meet Kenya's data protection and cryptocurrency transaction laws.
Worldcoin's legal officer, Thomas Scott, has expressed gratitude to the Kenyan authorities for allowing the company to resume operations. Scott also stated that Worldcoin will resume onboarding users across East Africa soon.
In its first week alone, 350,000 Kenyans were scanned with Worldcoin's orbs and registered on the platform. This resumption of operations indicates a move towards more regulated and user-friendly frameworks, as Worldcoin's ecosystem now integrates with robust financial infrastructure such as Onramper. This enables compliance with global standards for on- and off-ramping cryptocurrency to traditional payment methods and utilizes over 130 local payment methods.
Worldcoin's operations in Kenya are expected to operate under enhanced data privacy and security guidelines, likely influenced by prior regulatory concerns. The company must comply with stricter scrutiny on biometric data collection and user consent, as seen in similar contexts globally. This includes warnings by China’s Ministry of State Security about biometric data risks.
While exact legal or operational guidelines from Kenyan regulators after the resumption are not directly provided, it is clear that Worldcoin is operating under increased regulatory vigilance concerning biometric data privacy. The Kenyan police have dropped all investigations against Worldcoin, and they will take no further action against the company.
At the time, the 25 WLD signup bonus was worth about 7500 Kenyan shillings. As Worldcoin resumes operations, it is hoped that the company will continue to adapt and comply with the evolving regulatory landscape, ensuring the protection of user data and the security of its operations.
- In its resumption of operations in Kenya, Worldcoin will likely be adapting to Kenya's data protection and cryptocurrency transaction laws, incorporating blockchain technology and crypto finance as part of its framework.
- The enhancement of Worldcoin's regulatory scrutiny after resuming operations in Kenya implies integration of robust technology such as blockchain and advanced finance, addressing concerns related to data privacy and user consent.
