The Capital Market Authority (CMA) has cautioned Kenyans that Worldcoin is not registered to operate in the country.
In a statement, the Authority say Worldcoin and its related products, including crypto-tokens or their derivatives, are not investment products and do not fall under the scope of the Capital Markets Act, hence not under CMA’s regulations.
“The public is further advised to be wary of potential fraudulent schemes that may emerge in the over-the-counter market of crypto tokens,” CMA says.
“CMA is cognizant of the importance of Fintech and the benefits that can be derived from leveraging block chain technology. The Authority is willing to work with interested parties through the already established Regulatory Sandbox model for the purpose of supporting innovative Fintech products in a controlled and safe environment for the investing public.”
This comes shortly after the government suspended all Worldcoin activities in the country due to security concerns.
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In a statement, Interior Cabinet Secretary Kithure Kindiki said the suspension will remain in effect until relevant agencies certify the absence of any security risks.
"Relevant security, financial services and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the activities above, the safety and protection of the data being harvested, and how the harvesters intend to use the data," read part of the statement.
What Is Worldcoin?
According to Forbes Advisory, Worldcoin is a digital identification platform that aims to provide a convenient and safe mechanism for distinguishing genuine persons online from bots and AI algorithms.
The platform's heart is "World ID," evidence of personhood established by iris scanning with the Orb device.
The Orb detects a user's distinct iris pattern and generates an anonymous IrisCode stored on a decentralized blockchain.
This function prevents users from obtaining numerous World IDs, ensuring each identity is unique.
Users can access and maintain their World IDs using the "World App," a crypto wallet that gives users access to decentralized finance applications while protecting their privacy.
Along with World ID, the program supports a variety of cryptocurrencies such as Bitcoin, Ethereum, and USDC.
Users obtain access to the WLD cryptocurrency token when they create their World ID and download the World App.
The entire quantity of WLD is set at 10 billion tokens, distributed over 15 years. There are currently 143 million WLD in circulation, with a share reserved for confirmed World App users and market makers.
The use of iris scanning technology to authenticate users' identities distinguishes Worldcoin.
As opposed to other biometric technologies, such as fingerprint scanning, Iris scanning provides a secure and different identification approach.
Because each individual's iris pattern is distinct, it is difficult to fabricate or copy.
