Thai SEC Raids World Project Location Over Unlicensed Operations, Citing Digital Asset Law Breaches

Executive Summary

Thailand’s Securities and Exchange Commission (SEC) and Cyber Crime Investigation Bureau (CCIB) raided an iris scanning location linked to Sam Altman’s World project, citing potential breaches of local digital asset laws and triggering regulatory scrutiny.

The Event in Detail

Thai authorities, specifically the SEC and the Cyber Crime Investigation Bureau (CCIB), conducted a raid on a location in Thailand associated with "WLD exchange services" provided by the World project. This operation led to arrests, with investigators citing potential violations of local digital asset laws due to the absence of a required operating license.

The World project, known for its Orb-scanning process, has been actively collecting biometric iris data in Thailand, offering participants Worldcoin (WLD) cryptocurrency valued at approximately 500 to 1000 Thai baht ($15.45–$30.90) in exchange. Tools for Humanity (TFH) Thailand, the local affiliate, had partnered with 11 local entities, including the state-owned National Telecom, to facilitate these human verification services. By mid-June, over 100,000 individuals had undergone iris scans at 58 locations across the country.

Concerns regarding the project's activities had been previously raised by the Department of Provincial Administration, which issued a countrywide alert for local officials to monitor biometric data collection to prevent fraud. Authorities in Phatthalung Province had also ordered the suspension of Worldcoin's iris scan activities, citing serious concerns over personal data security and the legality of conducting crypto-related transactions without proper oversight. Despite these actions, Tools for Humanity (TFH) has publicly maintained that its services comply with the country's Personal Data Protection Act (PDPA). The World project had ambitious plans to expand its user base to two million and establish 1,000 Orb locations in Thailand by year-end.

Market Implications

The enforcement action by the Thai SEC signifies a tightening regulatory environment for digital asset projects operating within the country. The SEC explicitly warned the public against engaging with unauthorized operators providing WLD exchange services, reiterating that all digital asset businesses must comply with established criteria and obtain necessary licenses. Under the Digital Asset Business Act B.E. 2561 (2018), operators providing exchange services without a license (Section 3 and 26) face penalties (Section 66).

This development poses several challenges for the World project, including a potentially damaged public image in Thailand, slowed expansion efforts, and heightened risks of stricter regulations across other ASEAN countries. It also could contribute to a decline in public trust in projects perceived as operating in a regulatory gray area. The incident underscores the critical importance for global crypto projects to ensure full compliance with the specific regulatory frameworks of each jurisdiction in which they operate, particularly concerning data privacy and financial service licensing.

Broader Context

The actions taken by Thai authorities align with a global trend of increasing regulatory scrutiny and enforcement in the digital asset space. While regions like the European Union have implemented comprehensive frameworks such as the Markets in Crypto-Assets Regulation (MiCA) to establish clear rules for crypto service providers, many jurisdictions, including the United States, still grapple with unified federal crypto legislation, leading to complex operational environments.

Regulatory bodies worldwide are intensifying efforts to ensure consumer protection and financial stability within the evolving crypto market. Recent examples include the UK's Financial Conduct Authority (FCA) filing a civil lawsuit against HTX (formerly Huobi) for unlawfully promoting cryptoasset services without authorization, highlighting the universal requirement for registration and adherence to financial promotions regimes. These actions collectively signal a clear message to all digital asset entities: strict adherence to local laws, including licensing, data protection, and anti-money laundering regulations, is paramount for sustainable operation and market credibility.