Indonesia suspends Worldcoin, the eyeball-scanning cryptocurrency project co-founded by OpenAI CEO Sam Altman

Indonesian authorities said they have suspended Worldcoin, the eyeball-scanning cryptocurrency project co-founded by OpenAI CEO Sam Altman

Indonesian authorities have suspended Worldcoin, the eyeball-scanning cryptocurrency project co-founded by OpenAI chief Sam Altman and which has been met with complaints in several countries.

The decision to halt the project was made on May 4, said Alexander Sabar, Director General of Digital Space Surveillance at the Indonesian Ministry of Digital and Communications.

"We received reports from the public about suspicious activities linked to the Worldcoin project, and we are following up on these complaints to ensure the safety and security of the community," Sabar told Vietnam News Agency (VNA) on Monday.

He said that the government is also in the process of summoning local operators of Worldcoin, namely PT Terang Bulan Abadi and PT Sandina Abadi Nusantara, to obtain further clarification on their activities in the country.

Since its launch earlier this year, Worldcoin has been deploying its sleek scanning pods in a global rollout to scan millions of people's iris patterns for its "World ID".

The project, which is co-founded by Altman and crypto entrepreneur Ben Horowitz, aims to solve one of the main challenges facing the cryptocurrency industry.

Most crypto projects are pseudonymous, meaning users aren't required to provide their personal details when setting up a so-called 'wallet'. But this leaves platforms vulnerable to spam bots and scams.

Worldcoin's goal is to create a "layer 0" for Web3. Its token, WLD, is designed to be used for stips and transactions.

The project says the data is encrypted and safe. But it has run into trouble in several countries, including China's Hong Kong Special Administrative Region (SAR), Kenya, Spain and Portugal.

In May, the Chinese SAR's privacy watchdog said it was investigating the project over concerns it may be collecting excessive personal data from members of the public.

The regulator, the Personal Data Protection Commission (PDPC), said it was aware of reports that the Worldcoin project was carrying out activities in Hong Kong to register members and collect their iris scans.

"The Commission is making enquiries to ascertain the facts of the case and to advise the organisation on its obligations under the Personal Data Protection Ordinance (Chapter 486 of the Laws of Hong Kong Special Administrative Region ('P.D.P.O.')) in respect of the processing of personal data."

Its statement came after several reports in the Chinese-language press linked the project's activities in Hong Kong to complaints from members of the public.

The project is currently collecting data from people in Hong Kong to sign them up for its cryptocurrency project.

Those who sign up will receive an amount of WLD tokens, which can be used for stips and transactions.

People who join the project will also have their iris patterns scanned by a sleek metallic scanning pod, which is used to create a unique "World ID".

The project aims to create a new layer of identity on the internet, which will be used to verify that users are human and not spam bots or scammers.

It is part of a broader move by governments and institutions around the world to regulate the cryptocurrency industry.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) sued major cryptocurrency exchange Coinbase and smaller rival Gemini in separate cases.

The regulator is also investigating several other cryptocurrency firms.

The SEC's actions have sparked concern among crypto executives that the agency is trying to shut down the industry.

However, the SEC has said it is simply enforcing the law.

The agency has been increasing its scrutiny of the cryptocurrency industry in recent years.

In 2020, the SEC began an investigation into the Stellar cryptocurrency project after it raised $150 million from investors in a 2014 token sale.

The agency is also investigating several other cryptocurrency projects, including Block.one, the startup behind the EOS cryptocurrency.