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Indonesia Suspends Worldcoin Operations After Legal Concerns and Data Violations

Indonesia Suspends Worldcoin Operations After Legal Concerns and Data Violations

Cryptonewsland2025/05/05 16:33
By: by Wesley Munene
  • Komdigi suspended Worldcoin for operating without the required digital registration.
  • Authorities cited the use of another company’s license as a breach.
  • Worldcoin faces global scrutiny over biometric data practices.

Indonesia has officially halted operations of the World project, previously known as Worldcoin, following a government-led investigation. The Ministry of Communications and Informatics (Komdigi) confirmed the suspension on May 4, citing suspicious activity and regulatory noncompliance. The platform, co-founded by OpenAI CEO Sam Altman, is now facing scrutiny over registration and data practices in the country.

Registration Gaps Raise Immediate Red Flags

Komdigi stated that the local operator PT Terang Bulan Abadi lacked the mandatory Electronic System Operator Certificate (TDPSE). Additionally, the platform’s services in Indonesia were reportedly being delivered using another entity’s registration. This included the use of PT Sandina Abadi Nusantara, a different company, to provide digital services on behalf of World.

Authorities pointed out that using another company’s registration violates Indonesian digital operations law . The ministry called this a major breach and confirmed that both local companies would be summoned for further clarification. The probe aims to determine the extent of the irregularities and their impact on Indonesian users.

Community Complaints and Legal Irregularities Prompt Freeze

According to digital supervision head Alexander Sabar, the ministry acted after receiving complaints from the public regarding World’s activities. These complaints led to internal investigations that identified unauthorized service operations and potential risks to users. Sabar described the suspension as a preventive measure designed to protect the integrity of Indonesia’s digital space.

He confirmed that Komdigi is committed to enforcing strict compliance among digital platforms operating in the country. The ministry also reminded all electronic service providers of their obligation to register in accordance with national laws. Entities operating without proper registration risk immediate suspension.

World Faces Growing Pressure Across Global Markets

The incident in Indonesia adds to ongoing scrutiny surrounding World’s global operations. Since its launch in 2023, the project has faced suspensions and restrictions in countries including Kenya, Germany, Spain, and Portugal. These concerns have mostly centered around the platform’s use of biometric data, particularly iris scans used to create World IDs.

Authorities in Indonesia are now urging public vigilance and encouraging citizens to report unauthorized services. Komdigi stressed the need for continued community involvement in maintaining a secure digital environment. The ministry’s digital oversight division is also asking users to verify the legality of services they interact with online.

World’s local presence remains under suspension pending further investigation. The companies involved are expected to appear before the ministry for official questioning. Despite the freeze in Indonesia, World introduced its identity verification platform in several U.S. cities in early May 2025. However, global regulatory concerns continue to affect its international expansion.

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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