Worldcoin under Kenya’s Scrutiny: Espionage Allegations, Privacy Breaches, and Blockchain’s Regulatory Challenges

African city skyline under heavy clouds, Gothic noir style, dominated by shadow and cold light, with sinister undertones. Large digital eye representing data mining looms ominously over city. Elevated view of citizens lining up, clueless, mirroring naive acceptance of trade-off. Blockchain symbols sporadically spread, symbolizing complex connections.

Reputable Kenyan authorities have initiated questioning the operations of Worldcoin, hinting at possible acts of espionage and threats to the sovereignty of the nation. The allegations arise from the ongoing probe by Kenya’s Ad hoc committee, sparked by public apprehension around the activities of Worldcoin, which appeared to involve data mining of citizens’ iris scans and offering cryptocurrency tokens in exchange.

Placing Worldcoin’s practices under microscope, the committee vividly expressed concern about the company’s alleged data collection from Kenyan citizens in various locales across Nairobi since May 2021, implying potential overreach in their operations. Interestingly, Worldcoin had faced an operational ban in the African nation in August 2021 indicative of persisting tension.

The matter further deepens as the probe announces its focus on two foreign companies linked to Worldcoin: Tools for Humanity (TFH) Corp and Tools for Humanity (TFH) Gmbh. These entities, suspected of functioning unlawfully within Kenya, appear to devoid of any listing in the Kenyan Business Registration Services database, casting significant doubts on their legal standing in the country.

An intriguing facet is Worldcoin’s delayed application for registration as a data controller on August 22, 2022, an entire year after commencing operations in Kenya, a clear flouting of the 2019 Data Protection Act, according to the Kenyan authorities.

At the core of the controversy is Worldcoin’s dubious handling of citizens’ iris images acquired in real-time. These images, translated into digital data are alleged to be sent to overseas third-party servers. Although Worldcoin maintains the data’s secure storage in Amazon Web Services in South Africa, it generates doubts about its compliance with Section 48 of the Data Protection Act that rules against transnational personal data transfer.

Adding to this inconsistency, questions have arisen about the capability of retraction and deletion of this data in necessity, throwing light on possible risks for the registered users. At the time of the suspension of Worldcoin’s operations in August 2, 2023, an estimated 350,000 Kenyans had already registered with the company.

Significantly, despite facing such regulatory challenges, Worldcoin’s appeal worldwide seems unaffected with record levels of new sign-ups. Nevertheless, this incident spotlights the imperative need for adequate regulation, transparency, and secure data handling in the emerging blockchain markets.

Source: Cryptonews

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