Thailand Shuts Down Worldcoin Over Illegal Biometric Data-for-Crypto Exchange

Thailand has ordered Sam Altman-backed digital identity platform Worldcoin to halt operations and delete biometric data collected from 1.2 million users, marking another regulatory challenge for the company. The Ministry of Digital Economy and Society cited violations of the PDPA, which prohibits the exchange of sensitive biometric information-such as iris scans-for cryptocurrency tokens. Authorities emphasized that the practice of offering Worldcoin's native token (WLD) in exchange for iris scans breached legal standards for data collection and consent.

The decision, announced by the National Economic and Social Development Board (NESDB), followed a raid on a Worldcoin-linked iris scanning center in Bangkok in October 2025. During the operation, the Securities and Exchange Commission (SEC) and Cyber Crime Investigation Bureau arrested employees for allegedly operating an unlicensed digital asset exchange. The PDPC further noted that the company's model created risks of data leakage and illegal use of personal information.

Worldcoin Thailand, represented by TIDC Worldverse, responded by pausing local verification services and removing Thailand from its list of active locations. While the company stated it had "complied with local regulations," it denied wrongdoing and argued that its technology helps users combat identity theft and AI-driven fraud. The firm also highlighted that users had not been consulted before the data deletion order, with a source estimating that affected participants could lose approximately one billion baht in monthly token incentives.

The regulatory action has compounded financial pressures on Worldcoin. The WLD token fell to an intraday low of $0.6172 following the announcement, reflecting broader market concerns. Over the past year, the token has lost nearly 70% of its value, exacerbated by a recent unlock of 37 million tokens worth $23 million. Analysts note that rising supply and regulatory uncertainty may prolong the bearish trend, with key support levels at $0.573 under scrutiny.

Thailand's move aligns with a global crackdown on Worldcoin's operations. Colombia, Spain, Brazil, and Kenya have imposed similar bans, citing data privacy risks and lack of transparency. In November 2025, Colombia's competition regulator mandated the permanent closure of Worldcoin operations and deletion of biometric data. Regulators in Europe have also raised concerns, arguing that even anonymized iris data qualifies as personal information under GDPR.

As Thailand's Digital Economy Minister Chaichanok Chidchob stressed, "all operations must comply with personal data protection laws," signaling a broader regulatory stance on balancing technological innovation with privacy safeguards. Worldcoin's future in Asia and beyond will hinge on its ability to navigate these legal hurdles while maintaining user trust.