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Thailand Strikes a Balance Between Crypto Regulation and Tourist-Focused Digital Baht Trial

Thailand Strikes a Balance Between Crypto Regulation and Tourist-Focused Digital Baht Trial

Bitget-RWA2025/10/28 01:14
By:Bitget-RWA

- Thai SEC and CCIB raided a Worldcoin iris scanning site in Bangkok, arresting suspects for operating an unlicensed crypto exchange under the 2018 Emergency Decree. - Worldcoin’s biometric data collection for WLD tokens faces scrutiny in Thailand and globally, with regulators citing unlicensed services and privacy violations in Kenya, Germany, and France. - Authorities emphasized the crackdown aims to prevent fraud and money laundering, while Worldcoin introduced privacy upgrades like SMPC encryption and

On October 24, Thailand's Securities and Exchange Commission (SEC) and the Cyber Crime Investigation Bureau (CCIB) jointly raided a

iris scanning facility in Bangkok, detaining individuals suspected of running an unauthorized digital asset exchange, as reported by . The authorities focused on breaches of the 2018 Emergency Decree on Digital Asset Businesses, particularly Sections 26 and 66, which prohibit unlicensed cryptocurrency operations, according to . Officials highlighted that the action was intended to reduce the risks of fraud and money laundering for users interacting with illegal platforms, Lookonchain noted. This enforcement followed several weeks of surveillance by the SEC, which had earlier issued public alerts about unauthorized Worldcoin activities, according to .

Worldcoin, a digital identity initiative co-founded by OpenAI CEO Sam Altman, has established 102 iris scanning centers across Thailand, according to

. These locations offer tokens in return for biometric authentication, which is a key component of its World ID platform. However, local authorities maintain that these operations amount to providing unlicensed digital asset services, which must comply with Thailand’s rigorous licensing requirements, Coinotag stated. Jomkwan Kongsakul, the SEC’s Deputy Secretary-General, said the recent crackdown "strengthens law enforcement’s ability to shut down illegal businesses and shields users from potential legal issues," according to Lookonchain.

Thailand Strikes a Balance Between Crypto Regulation and Tourist-Focused Digital Baht Trial image 0

This enforcement action adds to Worldcoin’s mounting regulatory hurdles worldwide. Regulatory bodies in Kenya, Germany, and France have previously investigated the project over concerns about data privacy, Yahoo Finance reported. In May, a Kenyan court mandated the removal of biometric data collected from its citizens, ruling that Worldcoin’s consent process was invalid due to financial incentives, Yahoo Finance noted. European regulators, such as Portugal’s data protection authority, have also imposed limits, citing violations of GDPR, according to Yahoo Finance.

In reply, Tools for Humanity, Worldcoin’s parent company, has rolled out new privacy features, including Secure Multi-Party Computation (SMPC) to encrypt iris scans and an alternative verification method using NFC passports, Yahoo Finance reported. Despite these updates, the WLD token has dropped 90% from its March 2024 high and is now valued at $0.88, Yahoo Finance added.

The raid coincided with the start of Thailand’s 18-month trial program that lets tourists exchange cryptocurrency for baht. Finance Minister Pichai Chunhavajira described the program as a "boost for tourism," with a conversion limit of 550,000 baht ($16,949) to prevent misuse, Lookonchain reported. This combination of cracking down on unlicensed operators while encouraging regulated crypto use demonstrates Thailand’s efforts to balance innovation with financial security.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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