NAIROBI (Reuters) – A Kenyan parliamentary panel has urged the country’s information technology regulator to temporarily shut down cryptocurrency project Worldcoin within the country until more stringent regulations are established.
In early August, the government suspended the project due to privacy concerns related to the scanning of users’ irises in exchange for a digital ID to create a new “identity and financial network”.
Tools for Humanity, a company co-founded by OpenAI CEO Sam Altman, launched Worldcoin in multiple countries worldwide. However, it has faced scrutiny in countries such as Britain, Germany, and France.
Despite the August suspension, the project still maintains a virtual presence in Kenya accessible via the Internet.
An ad hoc panel of 18 lawmakers has called on the Communications Authority of Kenya, the regulatory body, to “disable the virtual platforms of Tools for Humanity Corp and Tools for Humanity GmbH Germany (Worldcoin) including blacklisting the IP addresses of related websites,” as stated in a report.
The panel also recommended suspending the physical presence of the companies in Kenya until a legal framework for regulating virtual assets and virtual service providers is established.
In response, Worldcoin’s press office noted that it had not received any official announcement directly from the Committee.
The panel’s report is set to be presented for consideration and adoption at a later date in the National Assembly.
During the data collection suspension in August, authorities expressed concerns that the project’s method of obtaining consumer consent, which involved providing a monetary award of slightly over $50, bordered on inducement.
The registration process for using the Worldcoin platform involved long queues of individuals waiting to have their irises scanned. An investigation by the parliamentary panel discovered that the project may have scanned the eyes of minors, as there was no age-verification mechanism in place, according to the report.
Furthermore, the panel called on government ministries to develop regulations concerning crypto assets and firms offering crypto services. They also urged the police to investigate Tools for Humanity and take appropriate legal action.
Reporting by Duncan Miriri; Editing by Aaron Ross and Hugh Lawson
Credit: The Star : Tech Feed
