CMA Warns Worldcoin not Licensed to Operate in Kenya

Kenyans are being cautioned by the Capital Market Authority (CMA) that Worldcoin is not officially registered in the country.

Additionally, the CMA notes that its associated products, such as cryptocurrency tokens or their derivatives, are not investment products and are not covered by the Capital Markets Act, which means they are not subject to CMA 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 said in a statement.

“CMA is cognizant of the importance of Fintech and the benefits that can be derived from leveraging blockchain technology,” it added.

“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.”

WorldCoin, which arrived in the country on Monday of last week, uses an Orb scanner to capture iris data before distributing tokens to users when it proves that they are not robots.

Then, tokens can be converted into digital currencies so that users can sell or cash out their tokens through agents.

“The CMA cautions the public against dealing in unregulated entities and products,” CMA concluded.

The Office of the Data Protection Commissioner (ODPC) recently issued a similar warning to the general public urging them not to use Worldcoin due to safety concerns.

According to the ODPC, the digital identification company processes sensitive personal data and must adhere to the 2019 Data Protection Act.