Sam Altman’s Worldcoin to resume iris scanning in Kenya following discontinuation of probe

Authorities in Kenya have cleared the Sam Altman-backed iris-scanning scheme, Worldcoin of any wrongdoing. This follows a year-long government probe of the company’s activities over privacy and security concerns. However, the country’s Directorate of Criminal Investigations (DCI) has announced a discontinuation of the probe. This was contained in a letter addressed to Worldcoin’s legal team. In the letter, the DCI said the investigation has been “closed with no further police action.”

The directorate further called on the blockchain platform to register the business officially, acquire requisite licenses and vet its vendors “for prudent continued operations.”

Responding to the development, Thomas Scott, Chief Legal Officer of Worldcoin’s parent company, Tools for Humanity said while it welcomes the result, it, however, signals a beginning and not an end.

“We are grateful for the DCI’s fair investigation and for the Director of Public Prosecutions’ determination to close the matter. This welcome result is, however, not an end but a beginning. We will continue working with the Government of Kenya and others and we hope to resume World ID registration across the country soon. For today, we are just pleased to return our focus to advancing Worldcoin’s mission: creating opportunities for people in Kenya and elsewhere to participate in the global economy,” he said.

Worldcoin’s travails in Kenya

Worldcoin was launched in countries like Kenya and Argentina in July 2023 as part of a large identity database creation scheme. The company offered cash rewards for people who wish to have their iris scanned. The company also collected other biometric details for identity.

Following its launch, its shares surged above 60 per cent as the platform crossed 2 million in digital ID signups in less than a month, with about 40,000 daily signups. However, privacy concerns started emerging with Kenya’s data regulator, the Office of the Data Protection Commissioner (ODPC) pointing its searchlight towards the startup.

The ODPC then announced said it was conducting an assessment of Worldcoin’s practices to ensure compliance with the law while urging increased vigilance by Kenyans. Following its assessment, the ODPC, along with the country’s interior ministry, announced the suspension of the crypto platform last August.

See also: Kenya suspends the activities of Worldcoin in the country 

Kenya’s minister of interior, Kithure Kindiki in a statement reported by Reuters, said the government is concerned with Worldcoin’s activities. He also said agencies would probe how it intends to use the data it gathers. He said action would be taken against anyone who engages in its activities.

Following the suspension, authorities raided warehouses where the crypto startup carried out its operations, confiscating documents and machines that are believed to be associated with the crypto project’s biometric data collection. Three weeks later, the country’s parliament formed a 15-member committee to investigate the controversial company and its operations in the country.

During the course of its investigation, a parliamentary committee member described Worldcoin as “a gang of criminals who are coming to harvest data from young people.”

Following its travails in the East African country, the company’s token lost so much value that 98.5 per cent of its investors reportedly recorded huge losses. This indicated that there was little or no genuine interest in the $WLD token. It is apparent that people who get their eyeballs scanned only did so after learning of the opportunity to get easy money.

But now, nearly one year after it launched what turned out to be ill-fated at the time, the crypto scheme has finally been cleared by the Kenyan authorities. While there are no details as to why it was cleared as the claims against them were pretty heavy, it will be interesting to see how the company kickstarts its moribund operations in Kenya.

It’s also important to note that Worldcoin and Tools for Humanity still face a number of other investigations pending in other countries. Perhaps its Kenyan vindication might trigger similar responses elsewhere.