Indonesia has temporarily halted the services of Worldcoin (previously known as World) and WorldID due to suspected violations of regulations. The decision came after a preliminary investigation by Indonesia’s Ministry of Communications and Digital Affairs revealed serious infractions in the operations of these services.

The investigation found that the company running Worldcoin in Indonesia, PT Terang Bulan Abadi, failed to register as an Electronic System Operator (PSE) as required by Indonesian law and lacked the essential TDPSE certification for legal operations. Additionally, Worldcoin was found to be using the registration certificate of another entity, PT. Sandina Abadi Nusantara, which violates transparency and legal accountability rules.

The suspension was initiated following reports of suspicious activities from the community. Representatives from the involved companies will be summoned to clarify allegations and address violations based on relevant regulations.

Worldcoin, which aims to establish a global digital identity system called WorldID, has faced controversies despite its innovative goals. The project utilizes biometric identifiers through iris scanning using the Orb device and rewards users with Worldcoin tokens (WLD).

Indonesia is enhancing its legal framework for digital activities, including cryptocurrency and blockchain, with regulations like the Personal Data Protection Law (PDP) and PSE requirements to ensure user privacy and data security. The suspension of Worldcoin and WorldID underscores the importance of legal compliance and transparency within the rapidly growing cryptocurrency industry. To gain trust from users and regulators, projects handling sensitive data like biometrics must prioritize security measures and transparent communication.