Indonesia’s Ministry of Communication and Digital, also known as Komdigi, has suspended the registration licenses of Worldcoin and its associated identity verification service, WorldID, amid rising public concern and suspected regulatory violations.
The move adds Indonesia to the growing list of countries taking action against the controversial crypto-biometric project backed by OpenAI CEO Sam Altman.
Worldoin hit over non-compliance and registration issues
In an official statement, the Ministry of Communication and Digital announced it had frozen the electronic system operator registration certificate (TDPSE), associated with Worldcoin and WorldID.
The ministry pointed out irregularities involving the companies facilitating Worldcoin’s operations in Indonesia, PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara as the reason for the suspension.
Alexander Sabar, Director General of Digital Space Supervision at the ministry, said the suspension is a preventive measure following public complaints regarding suspicious activity linked to the services.
According to the ministry’s findings, PT. Terang Bulan Abadi, believed to be operating Worldcoin’s on-ground services, is not registered as a valid electronic system provider and lacks a TDPSE, a requirement under Indonesian law.
Worldcoin was also found to be operating under the legal license of another company, PT. Sandina Abadi Nusantara, which raised questions of misrepresentation and improper data handling.
“Non-compliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation,” Sabar added.
Under Government Regulation No. 71 of 2019 on Electronic System and Transactions and Ministerial Regulation No. 10 of 2021, all digital service providers in Indonesia are required to be formally registered and accountable for their public-facing operations.
A pattern of global scrutiny is developing around Worldcoin
Indonesia’s suspension follows a global pattern of regulatory blowback against Worldcoin, which uses iris-scanning orbs to verify human identity in exchange for cryptocurrency. The project has drawn widespread criticism for its handling of biometric data, especially in markets with weak data protection frameworks.
Worldcoin’s operations in Kenya were suspended in August 2023 over privacy and financial security concerns after the government investigated the company’s operations, after thousands of people reportedly exchanged iris scans for $55.
Spain and Portugal’s data protection agencies ordered Worldcoin in March 2024 to stop collecting and delete all previously collected biometric data. The Spanish High Court upheld the ban, stating the project violated the European Union’s General Data Protection Regulation (GDPR).
Worldcoin also faces legal issues and has paused operations in South Korea and Hong Kong, among other countries.
The Sam Altman-backed project presents itself as a bridge to the global economy, issuing tokens to users in exchange for verifying their identity through biometric data.
In return, verified users get rewarded with free Worldcoin tokens. The company claims that the process protects user privacy, but critics have raised concerns about how the data is collected, stored, and used. There’s also the concern that paying people to get their biometric data without strong regulatory safeguards presents a serious risk, especially in poor developing countries.
The suspension in Indonesia adds yet another operational hurdle in what has become a difficult global rollout for Worldcoin.
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