A few weeks after its launch, the crypto Worldcoin (WLD) is making headlines and generating growing excitement among individuals who are rushing to obtain free WLDs. However, the project spearheaded by OpenAI CEO Sam Altman is not immune to trouble. In Kenya, the Ministry of Home Affairs has announced the temporary suspension of Worldcoin pending an in-depth assessment of the risks it could pose to the population. Let’s take a closer look at the situation
Worldcoin banned from Kenya: end of the craze
The Kenyan Ministry of Home Affairs announced the temporary suspension of Worldcoin on August 2, 2023. This measure was taken in response to concerns about the potential risks this crypto project poses to the population.
Statement on Worldcoin. pic.twitter.com/HiAMAoEXYL
– Ministry of Interior | Kenya (@InteriorKE) August 2, 2023
This decision comes just days after the Office of the Data Protection Commissioner (ODPC), which acts as Kenya’s data regulator, issued a warning regarding Worldcoin. In its statement published on Twitter on July 28, the ODPC had said it was reviewing Worldcoin’s practices to ensure compliance with the law.
Under Kenya’s Data Protection Act, the ODPC is responsible for ensuring that companies, including those operating in the crypto sector like Worldcoin, comply with current standards. As such, the ODPC has the power to carry out assessments and request information to verify Worldcoin’s compliance.
With this in mind, the ODPC has also called on Kenyans to exercise caution before sharing personal or sensitive data, and to find out how their data will be used. This warning also applies to this project, highlighting the potential consequences if Worldcoin fails to comply with the law.
“During its assessment of Worldcoin’s practices to ensure compliance with the law, we encourage Kenyans to ensure that they receive appropriate information before disclosing their personal or sensitive data. It is essential to carefully consider how this data will be used. “
WLD’s “free money” rush
The appeal of Worldcoin’s free WLD tokens is skyrocketing lately. In Nairobi, Kenya’s capital, hundreds of residents visit Quickmart supermarkets every day to have their irises scanned by Worldcoin orbs. It’s become a veritable human tide, with users exchanging their biometric data for a small sum in cryptocurrencies.
As a reminder, Worldcoin uses users’ eye scans to create digital identities called “World IDs”. In exchange for this recognition, participants receive 25 WLD tokens, the cryptocurrency associated with the project.
However, the majority of these users having their irises scanned are not very familiar with the world of cryptocurrency. So, some simply settle for a few Kenyan shillings (KSh) in cash in exchange for their biometric data, as well as their 25 WLDs.
Eldad Kanawa, a Nairobi-based crypto investor, said in an interview with TCN:
“There are long lines of people getting their irises scanned in exchange for 25 WLD. In most cases, all these individuals exchange the WLDs directly for KSh (5000 KSh), a price lower than the market price. “
Queue in front of a Worldcoin orb at China Square in Nairobi – Photo by Eldad Kanawa
Worldcoin: the spreading addiction
Worldcoin’s dazzling success is largely due to its extensive marketing campaign. Lively discussions on TikTok and Instagram quickly captured the attention of many young people who realized they could easily earn money with WLD tokens.
At the same time, several marketing teams formed in the city, looking to capitalize on this financial windfall. Their strategy resembles a network marketing system, rewarding users who invite others to have their eyes scanned.
A testimonial from Pascal Chigongo, one of the beneficiaries of the WLD token, shared with our team, perfectly illustrates this craze:
“I heard about Worldcoin on social networks. I went to China Square to get this free money. They offer this opportunity to anyone who downloads their app and subscribes. I also convinced two friends to participate and received KSh1,000 as commission for bringing them along. “
The suspension decided by the Kenyan Ministry of Home Affairs comes a few days after the French Commission Nationale de l’Informatique et des Libertés (CNIL) opened a similar investigation into Worldcoin’s practices.
The legality of collecting biometric data from individuals, as well as the way in which this data is stored by Worldcoin, is raising questions among several authorities around the world. In the U.S., regulators have even banned Worldcoin from entering the country altogether
