Kenya has concluded its investigation into Worldcoin, the cryptocurrency initiative launched by U.S. AI firm OpenAI, which had been suspended by the government last year.
The probe, initiated due to data security concerns amid a surge in activity in Nairobi, led to Worldcoin representatives facing questioning in Parliament about their data collection practices.
According to a letter dated June 14 from the Directorate of Criminal Investigations (DCI) to Coulson Harney LLP, Worldcoin’s legal representatives, the Directorate of Public Prosecutions (DPP) has decided to close the case file:
“The DCI expeditiously and objectively investigated an array of allegations into the activities of Worldcoin in Kenya in 2022/3 and touching on alleged unlawful collection and transfer of personal sensitive data.
The resultant investigation file was forwarded to the Office of the Director of Public Prosecutions for an independent review and advice.
Upon review of the file, the Director of Public Prosecutions concurred and directed that the file be closed with no further police action.”
The DCI has advised Worldcoin to take several steps going forward, including registering with the Registrar of Business Registry and obtaining licenses from the Office of the Data Protection Commission (ODPC) and the Communication Authority of Kenya (CAK).
They also recommended rigorous vetting and legal contracts with all local third-party vendors.
Last December, government sources indicated that Worldcoin would be allowed to resume operations in Kenya under new regulatory guidelines. The global rollout of the Worldcoin project began on June 24, 2023.
Despite its aim to establish a decentralized global currency, Worldcoin faced scrutiny over privacy concerns regarding the biometric data it was collecting from Kenyans.
The verification process involved scanning irises through an Orb in exchange for a digital identity known as World ID, with new members receiving 25 free WLD tokens after verification.
Following the suspension of Worldcoin, CEO Alex Blania expressed optimism about resuming operations in Kenya after addressing government concerns.
Tools For Humanity (TFH), the Germany-based company involved in the initial development of the Worldcoin protocol, paused World ID verifications in Kenya to collaborate with regulators and ensure compliance.
Interior Cabinet Secretary Kithure Kindiki previously highlighted concerns over data sovereignty and security, emphasizing that citizen data protection was paramount.
The project’s activities, including biometric data collection without government clearance, remained under scrutiny by Kenyan authorities.
Tools For Humanity had earlier revealed their biometric scanning activities in Kenyan urban centers since 2021 during the project’s pilot phase.
By early September, over 635,000 Kenyans had downloaded the Worldcoin app, though a significant number had yet to complete identity verification.
In addition to Kenyan scrutiny, Worldcoin also faced regulatory challenges in Europe, with inquiries raised by authorities in the UK and France regarding GDPR compliance issues related to biometric data collection.
In conclusion, while Kenya has closed its investigation into Worldcoin, the project continues to navigate regulatory landscapes both locally and internationally as it seeks to resume operations under revised guidelines.
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