Nairobi — The Capital Market Authority (CMA) is warning Kenyans that Worldcoin is not registered in the country.

CMA also adds that 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 said in a statement.

"CMA is cognizant of the importance of Fintech and the benefits that can be derived from leveraging block chain 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 rolled into the country on Monday last week, collects iris data using an Orb scanner before issuing users with tokens once they are proven not to be robots.

Tokens can then be transferred to cryptocurrencies, allowing users to either cash out through agents or sell them.

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

Only a few days ago, the Office of the Data Protection Commissioner (ODPC) also cautioned members of the public against using Worldcoin over safety concerns.

The ODPC says that the digital identification firm is processing sensitive personal data and thus needs to be compliant with the Data Protection Act, 2019.