Kenya suspended Worldcoin’s operations in August 2023 as government agencies investigated how the project collected and processed biometric data. The suspension came shortly after Worldcoin’s launch, when thousands of Kenyans were registering for World IDs by having their irises scanned by the project’s Orb devices.
According to a statement published on Facebook on August 2, 2023, the suspension would remain until relevant agencies had assessed whether the activities posed risks to Kenyans.
Interior Minister Kithure Kindiki said authorities were concerned about the collection of identification data, including iris scans, and warned that action could be taken against people promoting or supporting the project.
Kindiki added:
“Relevant security, financial services and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities.”
Why Worldcoin faced scrutiny
Worldcoin, founded by Sam Altman and other co-founders, launched its World ID system on July 24, 2023. The project used Orb devices to verify a person’s uniqueness through biometric information, with eligible participants receiving WLD tokens.
The approach created a difficult regulatory question. Worldcoin was not simply collecting information needed to open an ordinary financial account. It was using biometric data to establish proof of personhood, making the handling, storage and deletion of that information central to the project’s regulatory obligations.
As of August 2023, more than 350,000 Kenyans had reportedly registered for the project, according to a Reuters report citing local media.
Kenya’s Office of the Data Protection Commissioner (ODPC) subsequently conducted a formal investigation. Its determination records that a multiagency team examined Worldcoin’s operations, including its Orb devices and data-collection practices.
The concerns were not limited to Kenya. The UK’s data regulator announced that it would examine the project, while regulators in other countries also questioned its biometric-data practices.
Also Read: Kenya Unveils Sweeping Crypto Rules Targeting Licensing, Stablecoin Reserves
The suspension did not become permanent
Worldcoin continued operating outside Kenya while responding to regulatory scrutiny. Sam Altman remained optimistic about the project and highlighted its growth. Worldcoin had also reported plans to expand its Orb network to 1,500 devices across 35 cities in 20 countries.
The Kenyan suspension was eventually lifted. In June 2024, the country’s Directorate of Criminal Investigations closed its investigation into Worldcoin after the Director of Public Prosecutions directed that the case file be closed without further police action. Kenyan authorities subsequently cleared the way for the project to resume operations.
Worldcoin has since rebranded as World, but the regulatory questions raised in Kenya remain relevant to its model. The project continues to rely on biometric verification for World ID, while data-protection authorities in different jurisdictions have imposed restrictions or conducted investigations.
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