After a year-long investigation into the crypto startup Worldcoin, the Kenyan government has given the company the go-ahead to resume its iris-scanning and other operations in the country. The probe, which was launched over privacy concerns, has been closed with no further police action, according to a letter from Kenya’s Directorate of Criminal Investigations (DCI) addressed to Worldcoin’s legal team.
Worldcoin, co-founded by OpenAI’s Sam Altman, launched its iris-scanning scheme in Kenya as part of its plan to build a new identity and cryptocurrency system. However, just days into its launch, the program ran into trouble with Kenyan regulators, who suspended the company’s operations due to concerns about the authenticity and legality of its security, financial services, and data protection practices.
A parliamentary committee formed to investigate Worldcoin’s activities found that the company and its parent organizations had violated various Kenyan regulations related to data protection, consumer protection, and cybercrime. The committee also concluded that Worldcoin’s activities constituted acts of espionage and posed a threat to statehood. Additionally, the committee discovered that Worldcoin and its umbrella companies were not registered businesses in Kenya and had failed to obtain necessary approvals for their iris-scanning hardware.
Despite the parliamentary committee’s recommendation to shut down Worldcoin’s operations altogether, the DCI’s decision to close the investigation without further police action opens the door for the company to resume its activities in Kenya. However, the DCI has called on Worldcoin to officially register its business, acquire the necessary licenses, and vet its vendors to ensure compliance with Kenyan regulations.
Thomas Scott, Chief Legal Officer of Tools for Humanity, expressed gratitude for the DCI’s fair investigation and the Director of Public Prosecutions’ decision to close the matter. He emphasized that this development marks a new beginning for Worldcoin in Kenya, and the company plans to continue working with the Kenyan government to resume its World ID registration across the country.
While the Kenyan probe has concluded, Worldcoin and its parent company still face investigations in other countries, particularly in Europe. Data protection authorities in Germany, Spain, Portugal, and Italy are currently looking into complaints against Worldcoin and have either paused or banned the company’s operations pending the outcome of their investigations.
The Worldcoin case highlights the challenges that arise when new technologies are introduced at a rapid pace, often outpacing the regulatory frameworks in place to govern them. Kenya’s government has recognized the need to establish proper regulations for virtual assets and has formed a multi-agency technical team to develop a regulatory and monitoring framework that would cover crypto startups like Worldcoin.
As Worldcoin prepares to relaunch its operations in Kenya, it will need to work closely with the government to ensure compliance with all relevant regulations and address any lingering concerns about privacy and data protection. The company’s experience in Kenya serves as a reminder of the importance of engaging with local authorities and adapting to the regulatory landscape when introducing new technologies in different jurisdictions.
