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Indonesia Suspends Worldcoin, WorldID Over Regulation Violations

Coin WorldMonday, May 5, 2025 4:37 am ET

1min read

Indonesia has temporarily suspended the operations of Worldcoin and WorldID due to serious violations of regulations. The Ministry of Communications and Digital Affairs (Komdigi) announced the suspension following a preliminary investigation that uncovered two significant issues. Firstly, the company operating Worldcoin in Indonesia, PT Terang Bulan Abadi, failed to register as an Electronic System Operator (PSE) and lacked the necessary TDPSE certification required by Indonesian law. Secondly, Worldcoin was found to be using the registration certificate of another legal entity, PT. Sandina Abadi Nusantara, which constitutes a violation of transparency and legal accountability regulations.

Alexander Sabar, Director General of Digital Space Supervision, stated that the suspension was prompted by community reports of suspicious activities. Komdigi will summon representatives from the companies involved to clarify allegations and address violations, based on Government Regulation No. 71 of 2019 on Electronic Systems and Transactions and Ministerial Regulation No. 10 of 2021. "This freezing is a preventive measure to prevent potential risks to the community. We will also summon PT. Terang Bulan Abadi for official clarification in the near future," said Alexander Sabar.

Worldcoin, co-founded by Sam Altman, CEO of OpenAI, aims to create a global digital identity system called WorldID. The project uses the Orb device to scan users’ irises, generating unique biometric identifiers and rewarding users with Worldcoin tokens (WLD). Despite its ambition to build a decentralized identity verification system, Worldcoin has faced controversies worldwide.

Indonesia is developing a legal framework for digital activities, particularly cryptocurrency and blockchain. The Personal Data Protection Law (PDP), enacted in 2022, sets strict standards for collecting and using personal data, including biometrics. PSE regulations require all digital service providers to register with Komdigi and comply with security standards. The Commodity Futures Trading Regulatory Agency oversees cryptocurrency activities and mandates regular reporting from exchanges and projects. The Worldcoin case is part of Komdigi’s efforts to safeguard the national digital space.

Indonesia’s suspension of Worldcoin and WorldID serves as a clear warning that legal compliance and user privacy protection are non-negotiable amid the cryptocurrency industry’s rapid growth. Projects like Worldcoin must ensure transparency in operations and data handling to build trust with users and regulators. Projects involving sensitive data like biometrics need to invest in security measures and clear communication to address community concerns.

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