The Communications Authority of Kenya (CA) and the Data Commission have raised regulatory issues with Worldcoin operations in the country, urging those with complaints to make a formal report.
In a joint statement released on Wednesday, August 2 evening, CA Director General Ezra Chiloba and Data Protection Commissioner Immaculate Kassait have cited inducement and lack of clarity on the security and storage of data collected from users as some of the concerns.
"Lack of clarity on the security and storage of the collected sensitive data (facial recognition and iris scans). Obtaining consumer (data subject) consent in exchange for monetary reward which borders on inducement."
The duo also says Worldcoin, a private firm, has a lot of data from Kenyans but lacks a clear framework on how it plans to use the data and information on cybersecurity safeguards and standards.
"Uncertainty regarding consumer protection on cryptocurrency and related ICT services."
As a result of the issues raised, the state says there is a need for an inquiry to enable regulators and stakeholders to come up with appropriate measures to protect the public.
"Controversies around WorldCoin are not new. Similar concerns have been raised in other jurisdictions such as Germany, France, the United Kingdom, and India."
"Arising from these preliminary observations, a multi-agency investigation is underway. Consequently, and as directed by the Government, the WorldCoin must cease its data collection activities in Kenya until further notice."
A Berlin-based company, Tools for Humanity, runs Worldcoin.
The company was co-founded by Sam Altman, OpenAI boss, and Alex Blania and one other.
Tools for Humanity website reads that it is a technology company built to ensure a "more just economic system". It re-directs visitors to the WorldCoin website.
According to a report by Reuters, Altman has said that Worldcoin helps address how the economy will be reshaped by generative AI technology.
"The Worldcoin protocol is intended to be the world's largest identity and financial public network, open to everyone regardless of their country, background or economic status," states its website.
Worldcoin has claimed over two million sign-ups across the world around a week after its official launch on July 24, reports show.
Seemingly, what differentiates WorldCoin from many existing cryptocurrencies is its use of biometrics.
Its unique method of sign-up, involving scanning of irises, has rung alarm bells in countries such as France and Germany.
Hundreds of Kenyans have also been queuing in various signup spots to join the newest technology product.
However, the government has halted Worldcoin operations pending investigations amid security threats.
