• Kenya has suspended Worldcoin activities after nearly half a million sign-ups.
• Government agencies have cited security concerns and are investigating the authenticity of the project.
• The Capital Markets Authority (CMA) in Nairobi has warned against the ongoing registration for Worldcoin products.
Kenya Suspends Worldcoin Activities
The Ministry of Interior in Kenya has suspended all activities related to Worldcoin, a crypto project that launched on July 24th, due to security concerns. Nearly half a million Kenyans had already signed up for the project prior to its suspension.
Security Concerns Cited
The Cabinet Secretary Ministry of Interior, Kithure Kindiki released a statement saying “Relevant security, financial services, and data protection agencies have started inquiries and investigations to establish the authenticity and legality of the aforesaid activities… Appropriate action will be taken on any natural or juristic person who furthers, aids, abets or otherwise engages in or is connected with the activities afore described”.
Warning from Capital Markets Authority
The Capital Markets Authority (CMA) in Nairobi also warned against registering with Worldcoin stating that it was not regulated under the Capital Markets Act. France’s privacy watchdog is also investigating Worldcoin’s data collection practices.
Initial Uptake by Population
Despite these warnings, thousands of Kenyans had been eagerly lining up at Kenyatta International Conference Center (KICC) in Nairobi for hours prior to its suspension in order to receive 25 free tokens worth about $2 amounting to roughly Sh7000 each .
Conclusion
It remains unclear when/if Kenyan authorities will lift their suspension on Worldcoin activities as they continue their inquiry into its legitimacy.