Sam Altman has encountered a significant setback in Thailand as the country’s data protection commission has ordered Worldcoin to halt the collection of biometric data and delete the information of 1.2 million users. This decision stems from alleged violations of the Personal Data Protection Act (PDPA), specifically concerning the offering of WLD tokens in exchange for iris scans and the detection of potential illegal transfers of this data to third parties.
World Network, developed by Tools for Humanity (TFH) and supported by Altman, utilizes its World ID service to generate digital credentials that verify an individual's humanity through its Orb devices. In Thailand, the project operated 102 of these devices, making it a key market in Asia. Users who completed the verification process received 52 WLD tokens monthly, which are currently valued at approximately $0.63 each. The order for data deletion could impact the income generated by these users.
Regulatory Action and Previous Raids
The recent restriction followed a raid in October conducted by the Thai SEC and the Cyber Crime Investigation Bureau. During this raid, several employees were arrested, and Worldcoin's operations were challenged for allegedly functioning as a digital asset business without the necessary license. Potential penalties for these violations include up to five years in prison and fines of 500,000 baht, with additional daily fines of 10,000 baht if operations were to continue.
Global Restrictions on Worldcoin Operations
TFH and its Thai subsidiary, TIDC, have suspended iris scans in compliance with the order. However, they maintain that their operations were transparent and that the suspension affects millions of people who use the technology to protect themselves against scams, identity theft, and AI-driven fraud. Opas Cherdpunt, CEO of M Vision Plc, is reportedly organizing a petition with 500 affected users to challenge the data deletion order at the Central Administrative Court.
Thailand is not the only country to impose restrictions on World Network. A total of eight countries have now banned the platform, including Colombia, Spain, Brazil, Kenya, and Hong Kong. These countries have cited concerns related to transparency issues, the collection of data from minors, and a lack of proper consent. The suspension and data deletion orders are intended to prevent leaks and the illegal use of sensitive information. Local experts view this case as a cautionary tale regarding the consequences of noncompliance with data protection laws, noting that while Thai penalties are milder than those under the EU's GDPR, they still carry significant weight.
There is a notable increase in regulatory scrutiny directed towards digital identity and cryptocurrency projects that collect biometric data. This highlights the substantial legal and financial risks inherent in initiatives that combine advanced technology with financial incentives.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.