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Regulator Actions Intensify in Thailand's Crypto Scene with Worldcoin Scrutiny

Thailand's regulatory authorities have escalated their scrutiny of cryptocurrency operations, specifically targeting Worldcoin, a project that utilizes biometric data for digital identity verification.

The Thailand Securities and Exchange Commission (SEC) recently conducted a raid on a site associated with Worldcoin, over allegations of undisclosed exchange activities.

Worldcoin's controversial use of iris-scanning technology to verify users has drawn concerns not just in Thailand but globally, with investigations ongoing in several countries.

Regulators in jurisdictions like Germany, Kenya, Brazil, and Indonesia have previously raised alarms regarding the potential privacy risks associated with biometric data used by the project.

Reports indicate that Worldcoin operates 102 iris-scanning locations in Thailand, where participants are incentivized with its native WLD tokens for undergoing biometric verification.

Thai authorities assert that any digital assets provider must operate under a license issued by the Ministry of Finance, and Worldcoin reportedly failed to comply with these regulations.

Worldcoin has maintained that it strictly adheres to local regulations in the countries it operates, although the recent developments signal a tightening of oversight in the crypto industry.

This crackdown in Thailand may precipitate a shift in operational dynamics for Worldcoin and similar projects, compelling them to enhance compliance measures as regulatory frameworks evolve.

As the landscape continues to shift, stakeholders in the crypto space should remain vigilant and informed regarding compliance obligations to avoid facing significant penalties.

Ultimately, the heightened scrutiny over Worldcoin underscores the need for cryptocurrency projects to balance innovation with regulatory requirements, crucial for fostering sustainable growth in the sector.