Worldcoin shutdown 2023 Unveiled: Shocking Reasons Behind Kenya’s Game-Changing Shutdown

A Kenyan parliamentary committee created in August to investigate WorldCoin’s operations in East Africa recommended Worldcoin Shutdown

According to a report published today and acquired by TechCrunch, the committee has requested that Worldcoin shutdown online and offline presence. This includes adding the IP addresses of such websites to a blacklist until the nation enacts appropriate virtual property laws.

The lawmakers’ suggestions come after Kenya suspended WorldCoin operations in early August due to questions over the “authenticity and legality” of such activities with respect to security, financial services and data protection.

Within six months of accepting this report, the committee recommended that the country create a comprehensive oversight framework and policies for virtual assets and service providers. After that, they should present it to the National Assembly for appropriate legislative action.

They also requested that the National Treasury Cabinet Secretary work with relevant parties to create rules and an enforcement framework for effective regulation and supervision of virtual assets and providers.

The report also calls for Tools for Humanity Corp., the organization that created WorldCoin, and its Kenyan partners, including Tools for Humanity GmbH and Sense Marketing in Germany, to be the subject of a criminal investigation. Since these partners are accused of assisting in illegal activities, they have been advised to take appropriate legal action.

Reasons for worldcoin Shutdown

The committee concluded that Tools for Humanity and its subsidiary violated several Kenyan laws, including data security, consumer protection and cyber crime, which led to the request for an investigation. He was accused of spying and endangering the country with his actions.

Additionally, it was determined that company registration in Kenya was not available to WorldCoin and its affiliated companies. Despite collecting data for the cryptocurrency project, local partners like Sense Marketing were found not to be registered as a data processor or controller. Furthermore, WorldCoin failed to get the ICT authority to approve the use of the orbs, which they claimed were communication devices.

The presence of Worldcoin has prompted a review of the current legal framework in Kenya. The report recommends that the country implement requirements for full disclosure of how companies handle personal and sensitive data collected in Kenya. It also calls for legislative measures that regulate the collection of biological data, emphasizing its implications for privacy, security, health and human rights. In addition, it suggests the creation of a table where the Data Protection Ombudsman can report on his daily operations.

Worldcoin, which aims to create a new “human identity (global ID) and financial network” through eye scans and its own cryptocurrency, initially gained traction in Kenya, particularly after its official launch in late July. However, a surge in sign-ups for the recruitment bonus, which involves “free” crypto tokens, caught the attention of government agencies, leading to the suspension of Worldcoin iris scans in Kenya. This comes as Kenya ranks second in Africa (19th globally) after Nigeria in terms of cryptocurrency adoption, and fifth globally in terms of peer-to-peer exchange trading volume, according to a Chainalysis report from 2022.

This report actually makes it more difficult for Tools for Humanity to resume operations in Kenya soon and increases the level of international scrutiny currently being placed on the business by European officials.

what is worldcoin before discussing worldcoin shutdown

On July 24, 2023, OpenAI’s CEO, Sam Altman, unveiled Worldcoin, a groundbreaking cryptocurrency that introduces an innovative approach to identification, aiming to mitigate the risks of fraud. This development has garnered widespread attention for its distinctive feature – it looks directly into the eyes.

This fresh form of cryptocurrency establishes one’s “personhood” through an eye scan, effectively verifying their human identity as opposed to being an automated entity.

Worldcoin is decentralized, like other cryptocurrencies, which means the decisions are made by users and not a centralized entity, such as a bank. It took two years to develop this project. It seeks to address income inequality through a unique World ID.

The World ID proves that someone is a person and not some form of bot or AI. There are three parts to this project:

1. A unique digital identity to be used globally.
2. A global currency via Worldcoin tokens.
3. An app for payments, transfers and purchases using cryptocurrency or traditional assets.

WHAT IS ITS CONNECTION TO CRYPTO?

Worldcoin is first and foremost an identification project but is using cryptocurrency to get people to sign up. The Worldcoin token is trading for roughly $1.90, but its value is largely based on speculation rather than its current usability as a currency and now results in world coin shutdown .

Worldcoin launched officially in July, and as part of the promotion, early adopters were given an amount of cryptocurrency worth between $50 and $60, depending on the jurisdiction.

Implications of worldcoin shutdown

Last week in Nairobi, thousands of Kenyans queued up at a registration center where Worldcoin conducted iris scans in exchange for 25 coins, roughly equivalent to $50. The crowd, largely made up of young individuals, even had a designated line for mothers carrying children on their backs.

According to reports, some individuals had journeyed for great distances after hearing about the opportunity for “free money.” They openly admitted to not understanding the purpose of the iris scans or where their information would be stored, but were motivated by the prospect of financial gain.

Among those in line were university graduates who patiently waited for hours, underscoring the prevailing issue of high unemployment rates in Kenya, which has left many frustrated with the escalating cost of living.

In response to concerns, the Kenyan government has taken action by temporarily halting new sign-ups for Worldcoin while they investigate whether individuals’ data is being adequately safeguarded and worldcoin shutdown.

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FAQs about Worldcoin Shutdown in Kenya

1. Why was a Kenyan parliamentary committee formed to investigate Worldcoin’s operations in East Africa?

• The committee was created in August to investigate the operations of Worldcoin in East Africa due to concerns over the authenticity, legality, and security of its activities.

1. What is the committee’s recommendation regarding Worldcoin’s operations?

• The committee has recommended the worldcoin shutdown of both online and offline operations including the addition of its websites’ IP addresses to a blacklist until appropriate virtual property laws are enacted.

1. What led to the Worldcoin shutdown operations in Kenya in early August?

• Worldcoin shutdown done by kenya operations due to questions about the authenticity, legality, and compliance with security, financial services, and data protection regulations.

1. What actions has the committee recommended for the future of virtual assets in Kenya?

• The committee suggests creating a comprehensive oversight framework and policies for virtual assets and service providers within six months. This framework should be presented to the National Assembly for legislative action.

1. What are the recommended steps for regulating virtual assets and providers in Kenya after worldcoin shutdown?

• The committee recommends that the National Treasury Cabinet Secretary collaborate with relevant parties to establish rules and an enforcement framework for effective regulation and supervision of virtual assets and providers.

1. Why is Tools for Humanity Corp. and its partners subject to a criminal investigation?

• They are being investigated for their alleged involvement in illegal activities related to Worldcoin. The partners include Tools for Humanity GmbH and Sense Marketing in Germany.

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Reasons for Worldcoin Shutdown

1. Why did the committee conclude that Tools for Humanity and its subsidiary violated Kenyan laws?

• They were found to have violated several Kenyan laws, including those related to data security, consumer protection, and cybercrime, leading to the request for an investigation.

1. What were some specific violations related to Worldcoin’s operations in Kenya that cause worldcoin shutdown?

• It was determined that company registration in Kenya was not available to WorldCoin and its affiliated companies. Additionally, local partners like Sense Marketing were found not to be registered as data processors or controllers.

1. How has Worldcoin’s presence prompted a review of the legal framework in Kenya after worldcoin shutdown?

• The report recommends implementing requirements for full disclosure of how companies handle personal and sensitive data collected in Kenya. It also calls for legislative measures regulating the collection of biological data.

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What is Worldcoin before discussing Worldcoin Shutdown?

1. What is Worldcoin’s unique approach to identification?

• Worldcoin introduces a groundbreaking approach to identification by verifying human identity through an eye scan, rather than relying on traditional methods.

1. How does Worldcoin address income inequality?

• Worldcoin aims to address income inequality through the introduction of a unique World ID, which establishes a person’s identity and distinguishes them from bots or automated entities.

1. What are the three components of the Worldcoin project?

• The project includes a unique global digital identity, a global currency via Worldcoin tokens, and an app for payments, transfers, and purchases using cryptocurrency or traditional assets.

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What is Worldcoin’s Connection to Cryptocurrency?

1. Is Worldcoin primarily an identification project or a cryptocurrency project?

• Worldcoin is first and foremost an identification project that uses cryptocurrency to incentivize user sign-ups.

1. What is the current value of the Worldcoin token and how is it determined?

• The Worldcoin token is trading for roughly $1.90, but its value is largely based on speculation rather than its current usability as a currency.

1. What incentive did early adopters of Worldcoin receive upon its official launch?

• Early adopters were given an amount of cryptocurrency worth between $50 and $60 as part of the promotion during Worldcoin’s official launch.

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Implications of Worldcoin Shutdown

1. What was the response of Kenyans to the opportunity for “free money” through Worldcoin’s iris scans?

• Thousands of Kenyans queued up for iris scans in exchange for Worldcoin tokens, indicating a strong interest in the prospect of financial gain after worldcoin shutdown.

1. What concerns have arisen regarding the iris scans conducted by Worldcoin which cause worldcoin shutdown ?

• Individuals have expressed concerns about not understanding the purpose of the iris scans or where their information would be stored.

1. How has the Kenyan government responded to these concerns?

• The Kenyan government has temporarily halted new sign-ups for Worldcoin while they investigate whether individuals’ data is being adequately safeguarded.

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