Indonesia Suspends Worldcoin & WorldID Over Data Violations

Following the detection of activities suspected of violating regulations, Indonesia has temporarily banned the Electronic System Organizer Registration Certificate (TDPSE) of World (previously Worldcoin) and WorldID services.

This decision stems from a preliminary investigation and shows the importance of legal compliance in emerging markets like Indonesia.

Indonesia Suspends World

Indonesia’s Ministry of Communications and Digital Affairs (Komdigi) announced the suspension of Worldcoin and WorldID operations. Komdigi’s investigation uncovered serious violations in these services’ operations for two reasons.

Firstly, the company allegedly responsible for operating Worldcoin in Indonesia is PT Terang Bulan Abadi. As Indonesian law requires, Terang Bulan Abadi failed to register as an Electronic System Operator (PSE) and lacked the necessary TDPSE certification for legal operations.

Secondly, Worldcoin’s services were found to be using the registration certificate of another legal entity, PT. Sandina Abadi Nusantara. This constitutes a significant violation of transparency and legal accountability regulations.

According to Alexander Sabar, Director General of Digital Space Supervision, this suspension was prompted by community reports of suspicious activities. Komdigi stated it would 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 (rebranded World) is a blockchain project co-founded by Sam Altman, CEO of OpenAI. It 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).

Worldcoin will bring biometric identity verification to six US cities and plans to distribute 7,500 Orbs nationwide. Despite its ambition to build a promising decentralized identity verification system, Worldcoin has faced controversies worldwide.

Indonesia’s Legal Environment

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 (Bappebti) 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.

WLD price is down 0.56% in the last 24 hours, currently at $0.9477.