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Kenya’s Parliamentary Committee has issued a strong recommendation to halt the controversial Worldcoin cryptocurrency initiative. This comes due to privacy concerns and the urgent need for robust regulations. The move comes after a series of disputes over the project’s iris-scanning method for digital ID creation, which aimed to establish a global identity and financial network.
Privacy Concerns are Behind the Move
The committee called upon Kenya’s ICT regulator, the Communication Authority, to take decisive action. This includes blacklisting related IP addresses, effectively disabling Worldcoin’s physical and virtual presence in the country. This measure is to remain in place until Kenya establishes proper regulations governing virtual assets.
The Worldcoin project, spearheaded by Tools for Humanity and co-founded by Sam Altman, CEO of OpenAI, has been a contentious issue in Kenya. The Kenyan government had already suspended the Worldcoin initiative in August due to concerns regarding its privacy implications and the legality of its operations.
Worldcoin’s global ambitions have also attracted scrutiny in other countries, including Britain, Germany, and Argentina. Kenya’s parliamentary committee, comprised of 18 lawmakers, has unequivocally called for the cessation of Tools for Humanity Corp and Tools for Humanity GmbH Germany’s virtual operations. They have also urged a halt to the companies’ on-ground activities in Kenya until a comprehensive regulatory framework for virtual assets and providers is established.
Dubious Intentions
One of the central concerns surrounding the Worldcoin project was its method of acquiring user consent. Users were promised a monetary incentive of just over $50, which raised ethical questions about the project’s intentions. Additionally, the iris scanning process lacked an age-verification mechanism, raising alarms, especially concerning minors.
In response to these issues, the parliamentary committee has urgently called upon various government sectors to expedite the formulation of laws specifically designed for crypto assets and cryptocurrency service providers.
The committee’s recommendations hold significant weight and are scheduled for discussion in the National Assembly. This development deals a significant blow to Tools for Humanity’s plans to resume operations in Kenya and adds to the growing global regulatory scrutiny on the Worldcoin project.
