Worldcoin Suspended in Indonesia Over Registration Issues

Indonesia’s Ministry of Communication and Digital has temporarily suspended Worldcoin and its digital identity platform, World ID, due to registration issues and potential violations of local electronic system rules. The ministry confirmed the suspension of the Electronic System Organizer Registration Certificate (TDPSE) for both entities on May 4, following the discovery of inconsistencies in their operations within the country.

The ministry highlighted that one of Worldcoin’s local affiliates, PT Terang Bulan Abadi, failed to register as a recognized Electronic System Organizer, which 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, stated that the ministry will summon both entities for further investigation. This move is preventive and aims to protect the public from potential harm posed by unregistered digital service providers. Sabar emphasized that all digital platforms must take full responsibility for their activities and operate transparently within the country’s legal framework.

This suspension represents another regulatory hurdle for Worldcoin as it seeks to expand its global presence. Over the past year, the project has faced regulatory scrutiny from authorities in several countries, including Kenya, Germany, and China Hong Kong, which have examined its data collection practices. Despite these challenges, Worldcoin has recently achieved significant 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.

In addition to its expansion in the United States, Worldcoin has announced partnerships with companies like Visa, Tinder, Kalshi, and Morpho to explore new applications for its technology and drive broader adoption. These partnerships are part of Worldcoin’s strategy to integrate its identity verification system into various industries, enhancing its utility and reach.

The regulatory setback in Indonesia underscores the challenges that digital platforms face in navigating the complex landscape of global regulations. As Worldcoin continues to expand, it will need to address compliance issues and ensure that its operations align with the legal requirements of each region it enters. The suspension in Indonesia serves as a reminder of the importance of adhering to local regulations and the potential consequences of non-compliance.