The Kenyan Government has suspended the activity of Worldcoin, the recently launched digital identity crypto project, according to an Aug. 2 statement shared by Kenya’s Ministry of the Interior on its official Facebook page.

Kenya’s Capital Markets Authority further warned that Worldcoin’s products, including its WLD tokens and their derivatives, were not investment products recognized by local laws in a separate cautionary statement about the crypto project.

Information on Twitter showed that Kenyans were widely registering with the project due to the financial incentives attached. According to local reports, Worldcoin’s free WLD tokens were worth about KSH 7,000 (around $54), a significant amount for many Kenyans.

Despite news of its suspension, CryptoSlate’s data shows that the WLD token rose by roughly  5% in the last 24 hours to $2.408 as of press time.

Kenya suspended Worldcoin because of privacy concerns

The Kenyan Ministry said the government was concerned about Worldcoin activities within its territory as it involved “the registration of citizens through collection of eyeball/iris data.”

It continued that several federal bodies, including data protection agencies, were investigating the “authenticity and legality” of these Worldcoin activities concerning how it intends to use the collected data.

Consequently, the Kenyan government “SUSPENDED forthwith, activities of ‘WORLD COIN’ and any other entity that may be similarly engaging the people of Kenya until relevant public agencies certify the absence of any risks to the general public whatsoever.”

Meanwhile, the Kenyan government warned that it would take action against any individual who further abets the operation of the Sam Altman-backed project within the country.

Scrutiny across multiple jurisdictions

Several privacy regulators in the U.K., France, and Germany have launched separate investigations into Worldcoin over collecting biometric data to verify identities.

Germany’s top privacy regulator has investigated the firm’s data collection practices since November 2022.

However, Worldcoin Foundation previously told CryptoSlate that it complies with all laws and regulations governing the processing of personal data in the markets where its Worldcoin was available.