Indonesia Suspends Worldcoin, WorldID Over Compliance Issues

Indonesia has taken a significant step in regulating the cryptocurrency sector by temporarily suspending the operations of Worldcoin and WorldID. This action comes after an investigation revealed that PT Terang Bulan Abadi, the company operating Worldcoin in Indonesia, had failed to register as an Electronic System Operator (PSE) and lacked the necessary TDPSE certification for legal operations. Additionally, Worldcoin was found to be using the registration certificate of a different legal entity, PT. Sandina Abadi Nusantara, which raised serious concerns about transparency and legal accountability.

The suspension was announced by Indonesia’s Ministry of Communications and Digital Affairs (Komdigi) following community reports of questionable activities. The Director General of Digital Space Supervision, Alexander Sabar, stated that the suspension is a preventive measure to eliminate potential risks to the community. Komdigi plans to summon representatives from the involved companies to provide clarifications regarding the allegations.

The suspension of Worldcoin and WorldID underscores Indonesia’s stringent digital regulations, particularly those established under the 2022 Personal Data Protection (PDP) Law. This law sets rigorous standards for collecting and utilizing personal data, especially relating to biometric information. All digital service providers are required to register with Komdigi and adhere to security protocols, while the Commodity Futures Trading Regulatory Agency (Bappebti) oversees cryptocurrency operations, enforcing mandatory reporting from exchanges and projects.

Worldcoin, co-founded by Sam Altman, CEO of OpenAI, aims to establish a global digital identity system called WorldID. The project uses the Orb device to scan users’ irises and generate unique biometric identifiers, rewarding them with Worldcoin tokens (WLD). Despite its initiatives, Worldcoin faces scrutiny and controversies worldwide, particularly regarding privacy concerns related to biometric data collection.

This suspension serves as a reminder that legal compliance and user privacy safeguarding are essential amid the rapid expansion of the cryptocurrency sector. Initiatives like Worldcoin must prioritize operational transparency and data management to foster trust among investors and government agencies. Companies dealing with sensitive data, such as biometrics, should invest in robust security measures and ensure clear communication to address community concerns.

In conclusion, the suspension of Worldcoin and WorldID in Indonesia highlights the critical need for compliance in the emerging cryptocurrency space, particularly regarding user privacy and operational transparency. Without adhering to regulations, projects such as Worldcoin risk jeopardizing their operations and credibility internationally. This action by Indonesia underscores the importance of regulatory oversight in ensuring the integrity and security of digital innovations.