World Still Not Off The Hook: Thai Sec Raids Iris Scanning Hub Over Wld Token Breach

What Happened

Thailand’s Securities and Exchange Commission (SEC) and the Cyber Crime Investigation Bureau (CCIB) have raided a Worldcoin-linked iris scanning center in Bangkok, arresting suspects accused of running an unlicensed digital asset exchange.

The joint operation, announced Friday, is part of Thailand’s growing crackdown on unregulated crypto services amid global scrutiny of Worldcoin’s controversial biometric identity system.

According to the SEC’s statement, investigators discovered that the iris scanning hub was providing “WLD exchange services” without the required authorization under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018).

Worldcoin, now rebranded as World Network, was launched in 2023 by OpenAI CEO Sam Altman and Alex Blania as a biometric identity verification project that rewards users with WLD tokens for verifying their “humanness” through iris scans.

However, some local sites have reportedly gone further, providing token exchange services without the necessary licenses, an activity now under investigation.

Market Context

The verification process, carried out using a chrome sphere device known as the Orb, captures iris images to generate a unique digital ID, or World ID.

Why It Matters

“This collaboration will enhance the effectiveness of law enforcement in prosecuting and suppressing unlicensed digital asset businesses, while protecting users from a lack of legal protection and mitigating risks of scams and money laundering,” she stated.

Officials reiterated that users dealing with unauthorized operators are not covered by legal protection and face high risks of fraud and data misuse.

In Kenya, a High Court ruling in May ordered the deletion of all biometric data collected from citizens, describing Worldcoin’s consent practices as “invalid” due to monetary inducements.

Details

Has Worldcoin Crossed the Line in Thailand’s Crypto Crackdown?

The operators were allegedly facilitating token exchanges linked to Worldcoin’s native cryptocurrency, WLD, in violation of licensing laws.

The SEC said the arrests were made under Section 26 of the decree, which prohibits the operation of digital asset businesses without a license, with penalties prescribed under Section 66.

The law enforcement officials said the move was intended to protect users from potential scams and prevent money laundering through unregulated crypto exchanges.

At the joint press briefing, SEC Deputy Secretary-General Jomkwan Kongsakul said the operation marks a broader effort to tighten oversight of unlicensed digital asset activity.

The raid followed weeks of surveillance by the SEC’s monitoring unit, which has been tracking several unlicensed operators across Thailand.

The agency had previously issued public warnings against exchanging WLD tokens with unlicensed providers and urged the public to verify operator licenses through the official SEC website and its Check First application.

Worldcoin Faces Mounting Global Scrutiny as Thailand Joins Enforcement Wave

The platform operates over 1,100 Orb devices globally, including more than 100 locations across Thailand.

Users receive WLD tokens after completing verification, which they can exchange through the World App.

According to the World website, it only issues WLD tokens to users who complete verification in regions where such activity is legally permitted.

The project notes that eligibility for token distribution depends on several factors, including location and age restrictions.

Thailand’s enforcement action places it among a growing list of countries confronting Worldcoin’s practices.

Regulators in Spain, Portugal, Brazil, and Kenya have suspended or restricted the project’s operations, citing violations of data protection laws and concerns about the handling of sensitive biometric information.

European regulators have also intervened. Portugal’s data protection commission followed with a 90-day ban, while Germany imposed corrective measures to bring the project in line with EU privacy regulations under the General Data Protection Regulation (GDPR).