Worldcoin, the crypto startup co-founded by Sam Altman, faced a setback in Africa as Kenyan authorities suspended its iris-scanning activities, known as "proof of personhood verification," over concerns related to security, privacy, and data protection. The suspension includes activities of Worldcoin's local affiliates in Kenya. However, Worldcoin is now actively collaborating with relevant authorities to resolve the issues and hopes to resume iris scans in the country soon.

During the suspension period, Worldcoin aims to enhance its onboarding processes and crowd control measures to address concerns regarding the verification process. The company also plans to work closely with local officials to educate them about the privacy measures and commitments it implements.

Kenya, being East Africa's largest economy, has been a significant market for Worldcoin's services, attracting overwhelming demand. However, this led to large crowds, prompting a temporary pause in verification services as a safety measure.

The Kenyan Ministry of the Interior and National Administration raised concerns about the authenticity, legality, and data protection practices of Worldcoin's operations. The authorities are conducting inquiries to ensure the safety and protection of the data collected and how it will be utilized.

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Worldcoin's "Orb" devices, used for iris scans, have been part of numerous venues in Kenya. Following the global launch, locals who received tokens for the scans could trade them for USDT or cash. However, the perceived "free money" offer led to a surge in recruitment stations' traffic and caught the attention of government agencies.

Various agencies, including the Office of the Data Commissioner, expressed concerns about Worldcoin's lack of data security clarity and using financial incentives to obtain biometric data. The agencies also highlighted significant citizen data in the hands of private actors without a proper framework.

According to Kenya's Data Protection Act, companies handling personal data are required to register as data controllers or processors. Worldcoin confirmed its registration as a data processor with the office of the Data Commissioner. The law emphasizes lawful use of customer data, minimization of information collected, and the necessity of user consent for data collection. Additionally, companies transferring data outside the country must do so with proper consent from the data subjects.