The Kenyan ad hoc committee investigating the Worldcoin case claims the company’s actions constitute “acts of espionage and a threat to the state,” local media reported.
Worldcoin, which is under scrutiny for allegedly mining Kenyans’ data by scanning their irises in exchange for cryptocurrency tokens, was operating in 30 locations in Nairobi as of May 2021, including shopping malls and educational institutions.
The committee, led by Narok West MP Gabriel Tongoyo, has called on the Directorate of Criminal Investigations to investigate two associated foreign companies, Tools for Humanity (TFH) Corp and Tools for Humanity (TFH) GmbH, for allegedly operating illegally in Kenya.
The companies are suspected of violating several Kenyan laws, including the Data Protection Act, Consumer Protection Act and Computer Misuse and Cybercrimes Act. The findings showed that neither company appears in the Business Registration Services database of registered companies or corporations in Kenya, and thus does not have the legal mandate to do business there.
Worldcoin applied for registration as a data controller on August 22, 2022, a year after beginning its operations in the country, which Kenyan authorities say violates the Data Protection Act of 2019.
Public concern
The committee’s investigation was initiated by public concern about Worldcoin’s questionable activities, specifically the transmission of real-time iris images converted into digital code to Worldcoin’s remote servers abroad.
Although Worldcoin claims that the data collected is securely stored in Amazon Web Services in South Africa, uncertainties remain as to whether the data can be revoked and deleted when necessary, and whether the transfer of personal data outside Kenya complies with Section 48 of the Data Protection Act. Action.
The study found that about 350,000 Kenyans had registered by the time Worldcoin’s operations were suspended by the government on August 2, 2023.
This ongoing saga has highlighted the need for comprehensive legislation and oversight in the rapidly evolving digital economy, to protect the rights and data of the Kenyan public and to ensure that businesses operate within the boundaries of the law.
Misleading statements
Meanwhile, members of Kenya’s National Assembly have criticized Information, Communications and Digital Economy Cabinet Secretary Eliud Owalo, accusing him of providing misleading information about Worldcoin’s operations in Kenya.
Owalo confirmed in an interview with NTV on August 2 that Worldcoin was operating within the parameters of the Data Act 2019. However, he denied making any such statements during the committee’s proceedings, leading members to censure him for misleading the public.
Parliament is being urged to harmonize laws to regulate the fast-growing cryptocurrency regime in the country, following the findings that noted the inconsistency in Owalo’s statements from his September 11, 2023 submission. The committee recommended legislative intervention to regulate the collection of personal data, citing the implications for privacy, security, health issues and human rights.
Regulatory reform
Members of the National Assembly are also pushing for a change in the law to give the Office of the Data Protection Commission (ODPC) more leeway in imposing administrative fines and to bring the Data Protection Act in line with global standards. Proposals are underway to establish a board to oversee the commissioner’s day-to-day activities and ensure stricter compliance with data protection issues.
The committee’s recommendations include strict requirements for foreign companies seeking to register as data processors or administrators in Kenya. They would be required to provide proof of registration with local regulatory authorities and full disclosure about the use and storage of collected personal and sensitive data.
If the commission’s report is accepted in its current form, companies involved in virtual asset transactions will face mandatory tax payment procedures under the Income Tax Act, implying stricter regulations for entities dealing in cryptocurrencies and related virtual assets.
