Kenya’s interior ministry has revealed that it has suspended the activities of cryptocurrency project Worldcoin over safety concerns. Worldcoin was founded by the CEO of OpenAI, and it aims to create a global identity and financial network that allows anyone to access and benefit from the global economy, regardless of their country or background.

Furthermore, the project requires users to provide an iris scan using a device called the Orb. In exchange for this scan, users receive a digital ID and free cryptocurrencies in some countries. The Communications Authority of Kenya and the Office of the Data Protection Commissioner revealed that a preliminary review of Worldcoin's operations has raised concerns, particularly since obtaining consumer consent in return for a monetary award could be considered inducement.

Towards the end of July 2023, the Worldcoin Foundation announced that the Worldcoin project completed the protocol’s migration to the OP Mainnet. The company also released the World ID SDK and revealed its plans to scale Orb signups for World ID to more than 35 cities across 20 countries. At the same time, World Assets Ltd., which is one of the Foundation’s subsidiaries, has minted and released the Worldcoin token (WLD).

The token is available for those who participated in the project’s beta phase. Representatives from Worldcoin Foundation cited by Reuters revealed their plans to work with authorities to improve the understanding of privacy measures it has in place in Kenya and in other parts of the world. They also expressed Worldcoin’s commitment to providing an inclusive, privacy-preserving, decentralised on-ramp to the global digital economy.

The company wants to resume its services in Kenya while working closely with local regulators and other stakeholders. Data regulators are keeping a close eye on Worldcoin Reuters reports that that more than 350,000 Kenyans signed up for Worldcoin as of 1 August 2023, in exchange for free cryptocurrency tokens worth around 7,000 Kenyan shillings (USD 49). In July 2023, the data regulator of Britain revealed that it would keep a close eye on the launch of Worldcoin in the UK.

In Germany, concerns have been raised over Worldcoin’s large-scale processing of sensitive biometric data. Specifically, the Bavarian State Office for Data Protection Supervision started investigating Worldcoin in November 2022 because of concerns that the project seeks to process sensitive data at a very large scale using new technology. This new technology used to capture users’ biometrics has lalso been put into question.

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