The recent ruling by a Kenyan court has dealt a significant blow to Worldcoin, a cryptocurrency project that has been under scrutiny for its collection of biometric data from thousands of citizens. The court has ordered Worldcoin to erase the unlawfully gathered biometric data, citing concerns over data protection and privacy violations.
The decision specifically targets the company’s use of orbs to scan individuals’ irises in exchange for cryptocurrency. This process, conducted without valid consent and an approved Data Protection Impact Assessment (DPIA), was found to be in violation of Kenyan law. The Office of the Data Protection Commissioner (ODPC) will oversee the deletion process to ensure that the sensitive biometric data is properly handled.
Deputy Data Commissioner Oscar Otieno raised concerns about Worldcoin’s activities, stating that they posed a risk to public safety and lacked transparency. The court ruling not only mandates the deletion of the unlawfully collected data but also prohibits Worldcoin from handling any further data until a complete DPIA is conducted and valid consent is obtained from users. These steps are essential requirements under the Data Protection Act and must be followed before the company can resume operations in the country.
Worldcoin had announced its return to Kenya in 2024 with plans to expand its digital identity tools linked to blockchain-based incentives. However, the recent court ruling has thrown a wrench in its plans, forcing the project to meet strict legal conditions before moving forward. This setback underscores the importance of compliance with data protection laws and regulations, especially in the rapidly evolving world of cryptocurrency and blockchain technology.
As Worldcoin navigates this regulatory pushback, it will need to prioritize transparency, user consent, and data protection to rebuild trust with Kenyan citizens and regulators. The handling of biometric data is a sensitive issue that requires careful consideration and adherence to legal requirements to ensure the privacy and security of individuals’ personal information. Only by following the proper protocols and respecting data protection laws can Worldcoin hope to regain its footing in the Kenyan market and beyond.