- World says the WLD distribution follows jurisdictional rules.
- Indonesia, Germany, Kenya and Brazil have also opened inquiries into the project.
- Global regulators are tightening oversight of biometric crypto data.
World, the digital identity project led by OpenAI CEO Sam Altman and formerly known as Worldcoin, has encountered fresh regulatory challenges in Thailand.
Authorities carried out a raid this week at an iris-scan site reportedly linked to the platform, highlighting growing global scrutiny of biometric crypto projects.
The Thai Securities and Exchange Commission (SEC), working with the Cyber Crime Investigation Bureau (CCIB), announced Friday that it had executed a search at a location tied to “WLD exchange services.”
Investigators suspect the operator ran an unlicensed exchange in violation of digital asset laws.
According to official data, World operates 102 “orb” locations in Thailand where users scan their irises to receive a World ID in exchange for WLD, the project’s native token.
Each verified participant receives WLD as a reward for proving their human identity, but the SEC’s recent enforcement action raises questions about whether those operations comply with Thailand’s licensing framework.
Thai authorities allege unlicensed digital asset activity
The SEC and CCIB said the raid uncovered evidence that the site had provided exchange-related services without authorization.
A suspect has been arrested and is expected to face charges under Thailand’s digital asset regulations.
Officials stressed that any entity offering digital asset services, including token distribution or exchange functions, must obtain a license from the Ministry of Finance and register with the SEC.
World maintains it only operates in jurisdictions where its activities are legally permitted.
The company’s website states that eligibility for WLD tokens is restricted by geography, age and other factors, and notes it is not responsible for trading of WLD on third-party centralized or decentralized exchanges.
Growing global pressure on biometric crypto models
This latest enforcement action in Thailand adds to a series of investigations around the world into the World project, which launched in July 2023.
Regulators in Germany, Kenya, Brazil and Indonesia have previously voiced concerns about data privacy and licensing.
In May, Indonesia’s Ministry of Digital Affairs said it was investigating local World operators over potential registration breaches and suspicious activity.
The company voluntarily paused its verification services there while clarifying licensing requirements.
In Germany, data protection authorities warned that biometric information, such as iris scans, poses significant risks if not properly anonymized or stored.
Kenya temporarily suspended World’s local operations last year, citing privacy and safety concerns after thousands queued for iris scans in exchange for free tokens.
Brazilian officials have also demanded greater transparency about how biometric data is collected and stored as part of World’s verification process.
World faces ongoing compliance challenges
Since its launch, World has positioned itself as an ambitious effort to build a global digital identity network, aiming to verify human users in an era of artificial intelligence and deepfakes.
The WLD token is intended to reward people who sign up for the system and to help build an ecosystem of verified human users.
However, the project’s expansion strategy, particularly in emerging markets, has raised alarms.
Critics argue that rapid onboarding in regions with weaker regulatory oversight exposes vulnerable populations to privacy and legal risks.
Despite these concerns, World remains active in more than 30 countries and relies on hundreds of orb devices worldwide.
The company says its operations are continually reviewed to ensure compliance with local laws, though recent raids suggest that adherence to those laws remains uneven across jurisdictions.
While the Thai SEC did not specify the full scope of the alleged violations, the arrest signals stronger enforcement as the country tightens oversight of crypto-related businesses.
The development could prompt World and other biometric-based crypto projects to adopt stricter compliance standards and seek clearer legal frameworks before further expanding in Asia.