SEC Moves Against Worldcoin, Closes Iris Scan Points and Files Charges Against 5 Individuals

The Securities and Exchange Commission (SEC) is pursuing legal action against Worldcoin, closing iris scan points and filing charges against 5 individuals for unauthorized digital business operations. SEC has been conducting comprehensive investigations into Worldcoin (WLD) activities, particularly the iris scanning service for receiving WLD coins, to protect investors and the public from potential future damages. On January 30, 2024, SEC Secretary Pronarong Bussaratanakul revealed that the agency has been continuously monitoring the Worldcoin case, focusing on services that may constitute unauthorized digital asset business under the 2018 Digital Asset Business Decree. The SEC has coordinated with relevant agencies including the Ministry of Digital Economy and Society, Technology Crime Suppression Division, and Department of Special Investigation to expand the investigation. In October 2023, the SEC collaborated with the Technology Crime Suppression Division to inspect WLD coin exchange services and arrest suspected unauthorized digital asset operators. On January 9, 2024, the SEC filed complaints against 5 individuals with the Economic Crime Suppression Division for operating digital asset trading without proper authorization. Additionally, on November 24, 2023, the Personal Data Protection Commission ordered service providers to immediately stop collecting iris scan data and delete any personal information to prevent unauthorized use. The SEC has instructed digital asset businesses to clearly communicate with customers about WLD coins and display warning signs on their platforms, emphasizing customer interests. Currently, the SEC is investigating whether World App and Mini App services constitute unauthorized digital asset business, and will take legal action if violations are found. "This progress reflects that the SEC and related agencies are closely monitoring the situation and strictly enforcing the law when violations are detected, to comprehensively protect investors and the public," said the SEC Secretary. The SEC advises the public to be cautious when using services from digital asset businesses not authorized under Thai law, as they will not receive legal protection and may pose significant risks.