As the world of blockchain continues, countries across the globe are becoming ever more vigilant about the potential risks associated with cryptocurrency projects. A prominent one in the spotlight is the Worldcoin cryptocurrency project—hit with an obstacle in Kenya. The Kenyan government has implemented a 15-member parliamentary committee to carry out a full-scale investigation into the project. The same committee, led by Narok West MP Gabriel Tongoyo, is given a time frame of 42 days to complete the exploration and submit its findings. Although contacting the MP didn’t provide insights into their key concerns, the investigation, apart from already gestating tensions between Worldcoin and numerous countries, signifies that Kenyan regulators are becoming increasingly wary about the security implications of the project.
The key player in this suspension of Worldcoin’s activities is the Interior Cabinet Secretary Kindiki Kithure, who has expressed the government’s apprehensions regarding the project’s procedures of registering citizens and accumulating eyeball/iris data- a practice that could potentially jeopardize national security.
Simultaneously, courts have also taken a stance against Worldcoin, suspending its activities after a lawsuit initiated by the office of the data commissioner was filed. Concurrently, the court stipulated that the data harvested by Worldcoin from the previous year until August 2023 should remain untouched pending the lawsuit’s finalization.
Despite its controversies, Worldcoin, a digital ID-centric crypto project that rewards users with its native cryptocurrency (WLD coin) in exchange for scanning the user’s iris, was launched after a successful trial phase, gaining close to 2 million users. Unfortunately, as the project expanded into the public arena, in various countries, accusations of controversial tactics began to surface. This has prompted governments from around the world, including Nigeria, the UK, Argentina, Germany, and now Kenya, to investigate the project extensively.
Meanwhile, another similar development took place in Somalia, where the Federal Republic has made a decision to ban the somewhat cryptocurrency-friendly messaging app, Telegram, in conjunction with TikTok, and the online betting site 1XBet. The shutdown is part of an effort to preserve societal culture and reduce “bad habits” associated with these platforms, which include the possible propagations of indecent content and misinformation.
Regulations and regulatory bodies are becoming an increasingly prominent feature in the world of cryptocurrencies, reflecting the growing mainstream acceptance and its accompanying stages of challenges that are yet to be overcome for a harmonious coexistence. Both the investigation in Kenya and the ban in Somalia provide a perfect yet contrasting dichotomy of the diverse issues faced by countries in the face of the rapidly evolving blockchain technology.
Source: Cointelegraph
