Kenya’s committee begins investigation into Worldcoin.

Kenya's committee begins investigation into Worldcoin.

The Blockchain Industry under Scrutiny: Examining the Worldcoin Controversy in Kenya

The Kenyan government has recently established a 17-member committee to investigate the operations of American-based cryptocurrency firm Worldcoin. The investigation was prompted by concerns over Worldcoin’s collection of biometric data, which failed to meet Kenya’s data privacy laws. This article will delve into the details of the Worldcoin controversy, highlighting the joint ad-hoc committee investigation, the failure to meet privacy laws, and the subsequent suspension of Worldcoin’s operations in Kenya.

Joint Ad-hoc Committee Investigation in Kenya

Kenya’s National Assembly Speaker, Rt Hon. (Dr.) Moses Wetang’ula, has ordered a Joint Ad-hoc Committee to investigate the activities of Worldcoin and report back to the House within 42 days. The committee’s investigation commenced after outlining its Terms of Reference and determining potential experts and witnesses to provide testimony during the proceedings.

Gabriel Tongoyo, the head of the 17-member committee, has specified that key witnesses will include The Governor of the Central Bank of Kenya, the Cabinet Secretary for the National Treasury, The National Intelligence Service (NIS), the Directorate of Criminal Investigations (DCI), and the Ministry of Health. These experts and witnesses will shed light on the relationship between Worldcoin and crypto trading in Kenya, as well as potential health hazards arising from the reported iris scans.

Moreover, the office of the Attorney General, the Registrar of Companies, and the Data Commissioner are expected to address questions regarding the legal framework governing Worldcoin’s operations in Kenya. This examination aims to ensure due diligence was exercised during Worldcoin’s registration process in the country.

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Given the urgency of the matter, the committee faces a tight deadline to provide the necessary answers to the legislators. Local media reports have indicated over 350,000 Kenyans signed up for Worldcoin, receiving a free $49 worth of WLD tokens valued at 7,000 Kenyan shillings before the suspension of operations.

Worldcoin Fails to Meet Privacy Laws

Worldcoin’s method of collecting biometric data in exchange for tokens reportedly violates regulatory requirements in Kenya, where the disclosure of personal information must only occur under critical circumstances. Immaculate Kassait, the Data Commissioner for Kenya, highlighted that Worldcoin had not been transparent about its objectives during the registration process.

Additionally, the Kenyan Capital Markets Authority stated that Worldcoin had been conducting activities in the country without regulatory supervision. This lack of oversight created skepticism among citizens, leading to hesitancy in sharing their data with Worldcoin. Consequently, Interior Cabinet Secretary Kithure Kindiki ordered the suspension of all Worldcoin operations in the country, citing security concerns. Eliud Owalo, the digital counterpart of Kithure Kindiki, has also warned against involvement with Worldcoin.

In recent news, the Kenyan police carried out a raid on Worldcoin’s facility in Nairobi, resulting in the confiscation of documents and equipment. The purpose of this raid is to access the collected data and facilitate proper investigations. Despite these developments, Worldcoin expressed its willingness to cooperate with authorities and outlined plans to resume operations following the implementation of crowd-control measures.

The Worldcoin controversy in Kenya serves as a reminder of the importance of adhering to privacy laws and establishing robust regulatory frameworks. The blockchain industry must navigate the delicate balance between technological innovation and safeguarding users’ privacy and security. As the world continues to adopt blockchain technology, governments and individuals alike must keep a vigilant eye on the potential risks and benefits it brings. The outcome of the joint ad-hoc committee investigation in Kenya will shed further light on how the blockchain industry can ensure responsible and compliant practices.

A comprehensive analysis of the industry and regulatory environment is essential to safeguarding the interests of all stakeholders involved. Through collaboration between governments, regulatory bodies, and industry participants, the blockchain industry can evolve to embrace innovation while maintaining the highest standards of privacy, security, and legal compliance.

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