The Kenyan government has put a halt to the operations of the WorldCoin cryptocurrency initiative while investigations are ongoing to ensure the security of the collected information.
“The government has suspended forthwith activities of WorldCoin and any other entity that may be similarly engaging the people of Kenya until relevant public agencies certify the absence of any risks to the general public whatsoever,” said the Interior Ministry of Kenya in a statement.
“Appropriate action will be taken on any natural or juristic person who furthers, aids, abets or otherwise engages in or is connected with the activities afore described.”
Statement on Worldcoin. pic.twitter.com/HiAMAoEXYL
— Ministry of Interior | Kenya (@InteriorKE) August 2, 2023
The issue was also discussed in the National Assembly where the Majority Leader posed:
“The owner of this company, WorldCoin, Sam Altman has been banned from collecting data in his home country in the U.S. So, what is it that the Americans know about Sam Altman that the Kenyan state does not know that we can allow him to come and harvest all manner of data from our people?”
– Kimani Ichungwa, National Assembly of Kenya Majority Leader
Moreover, the Capital Markets Authority (CMA) of Kenya has warned of the emergence of potential fraudulent schemes involving cryptocurrencies in the backdrop of the excitement over WorldCoin.
According to multiple reports, many Kenyans are eager to line up for the free tokens ($WLD) being provided by WorldCoin once they scan their irises using machines (orbs) situated across various areas in Nairobi, Kenya, including shopping centers.
About 350,000 Kenyans are said to have registered onto the platform, as founder, Sam Altman, claims 8 people across the world are being on-boarded per second. According to one report, the first free 25 $WLD tokens are worth about Ksh. 7,786 ($54.60).
CMA Kenya indicated that WorldCoin is not under regulation in Kenya, and this includes its associated offerings like the complimentary crypto tokens and their related derivatives, which do not fall within the category of investment products as defined by the Capital Markets Act.
CAUTIONARY STATEMENT ON #WORLDCOIN BY THE CAPITAL MARKETS AUTHORITY OF KENYA 🇰🇪 pic.twitter.com/JcwL1da8M4
— BitKE (@BitcoinKE) August 2, 2023
The Kenya Office of the Data Protection Commissioner (ODPC) also asked Kenyans to be vigilant as hundreds thronged venues in the capital to register for WorldCoin.
“As the ODPC conducts its assessment of WorldCoin’s practices to ensure compliance with the law, Kenyans are urged to ensure that they receive proper information before disclosing any personal or sensitive data,” the organization said.
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