Worldcoin Faces Regulatory Raid in Thailand Over Iris Scanning
Background: Worldcoin’s Expansion and Regulatory Scrutiny
Worldcoin, recently rebranded as World, is encountering fresh regulatory challenges in Thailand. The project, backed by OpenAI CEO Sam Altman, uses iris scanning technology to verify users’ identities and issues its native cryptocurrency, WLD token, to verified individuals. According to Cointelegraph reporting, Thai authorities raided a World iris scanning location this week, alleging unauthorized operation of a digital asset exchange.
The raid was conducted by the Thailand Securities and Exchange Commission (SEC) alongside the Cyber Crime Investigation Bureau (CCIB). Officials stated the site was offering “WLD exchange services” without the required digital asset license, potentially violating Thailand’s financial regulations.
World operates over 100 orb scanning locations across Thailand, according to company data. These devices are used to scan users’ irises for verification, after which verified users can receive WLD tokens. However, Thai regulators contend that at least one operator was providing exchange services illegally.
Market Reaction and Ongoing Investigations
Thailand’s SEC confirmed that suspects have been arrested and law enforcement proceedings are underway. “The investigator has arrested suspects for committing the offense, subject to further relevant law enforcement proceedings,” the Thai SEC announced, as quoted by Cointelegraph.
World responded by stating that WLD token eligibility is determined by geography, age, and other local requirements and noted that availability on third-party platforms, whether centralized or decentralized, falls outside its control. The project’s developer, Tools of Humanity, has not issued a public comment on the latest enforcement action as of publication.
Since its global rollout in July 2023, World has experienced increased scrutiny in several countries. Indonesia’s Digital Ministry previously launched an investigation into World’s operators due to concerns over compliance and suspicious registration activity, prompting World to pause its local services. Authorities in Germany, Kenya, and Brazil have also raised alarms regarding biometric data security and user privacy associated with World App.
What’s Next for Worldcoin and WLD in Thailand?
The recent raid marks yet another regulatory challenge for Worldcoin as it attempts to expand its digital identity ecosystem. It remains unclear how many verified users in Thailand or globally are affected by the ongoing investigation.
World’s official stance emphasizes distribution of the WLD token only where legal, highlighting ongoing efforts to comply with local laws. However, the project’s expansion into global markets continues to be monitored closely by financial authorities concerned with digital asset compliance and personal data protection.
Market participants and cryptocurrency observers are watching for further updates from Thai regulators regarding the future of Worldcoin’s operations in the country. Broader implications could be seen for similar biometric-based projects in jurisdictions prioritizing digital asset regulation and privacy protections.
For ongoing coverage of digital currency regulations, visit Vizi’s Cryptocurrency section.
