Worldcoin faces regulatory setback in Indonesia over compliance issues

Indonesia’s Ministry of Communication and Digital has temporarily suspended World (formerly Worldcoin) and its digital identity platform, World ID, citing registration issues and possible violations of local electronic system rules.

According to a May 4 statement, the ministry confirmed it had suspended the Electronic System Organizer Registration Certificate (TDPSE) for both Worldcoin and World ID. This suspension came after the agency discovered inconsistencies in how the project operated in the country.

The ministry noted that one of Worldcoin’s local affiliates, PT Terang Bulan Abadi, failed to register as a recognized Electronic System Organizer.

This status is mandatory for any digital platform seeking to operate legally in Indonesia. Instead, the project reportedly ran its operations under the license of another company, PT Sandina Abadi Nusantara, raising concerns over identity misuse and compliance gaps.

The Director General of Digital Space Supervision, Alexander Sabar, said the ministry will summon both entities to investigate further. He noted that this move is preventive and intended to protect the public from any potential harm that unregistered digital service providers pose.

Sabar also emphasized that all digital platforms must take full responsibility for their activities and operate transparently within the country’s legal framework.

Worldcoin’s advancements

This suspension marks another regulatory obstacle for Worldcoin as it attempts to expand its presence worldwide.

Over the past year, the project has faced regulatory scrutiny from authorities in several countries, including Kenya, Germany, and Hong Kong, which have scrutinized its data collection practices.

Despite these setbacks, the platform has recently secured notable growth by expanding its identity verification system into the United States.

The service is now available in six cities, including Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco, where residents can verify their identity as humans through World ID.

Beyond that, World has also announced partnerships with companies like Visa, Tinder, Kalshi, and Morpho to explore new applications for its technology and drive broader adoption.

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