A Kenyan parliamentary committee, formed in August to investigate the activities of Sam Altman’s crypto project, Worldcoin, in the country, has recommended that the project be shut down.

The committee’s report calls on Kenya’s ICT regulator, the Communication Authority, to disable Worldcoin’s physical and virtual presence, including blacklisting related IP addresses until proper regulations for virtual assets are established. The committee has also recommended the development of comprehensive oversight frameworks and policies on virtual assets and their service providers within six months and urged the cabinet secretary for the National Treasury to develop regulations and enforcement infrastructure for adequate regulation and monitoring.

The report is set to be tabled before the National Assembly for consideration and implementation. The report also called for criminal investigations into the operations of Tools for Humanity Corp. and its Kenyan partners for aiding and abetting criminal activities, stating that the activities “constituted acts of espionage and a threat to statehood.”

It also found that Worldcoin, Tools for Humanity Corp (USA), and Tools for Humanity GmbH (Germany) were not registered businesses in Kenya, and local partners were not registered as data processors or controllers.

Worldcoin had launched signups in Kenya for its human identity and financial network project, but the government suspended iris scans in Kenya after concerns arose. Kenya ranks second in Africa in crypto adoption, according to a 2022 Chainalysis report.