Indonesia Suspends Worldcoin (Previously World) Operations Following Detection of Activities Suspected of Violating Regulations

Following the detection of activities suspected of violating regulations, Indonesia has temporarily banned the Electronic System Organizer Registration Certificate (TDPSE)

Following the detection of activities potentially violating regulations, Indonesia’s Ministry of Communications and Digital Affairs (Komdigi) has announced the temporary suspension of the Electronic System Organizer Registration Certificate (TDPSE) of World (previously Worldcoin) and WorldID services.

This decision, stemming from a preliminary investigation, highlights the importance of legal compliance in emerging markets like Indonesia.

The ministry's statement revealed that its investigation had uncovered serious violations in the services' operations. Worldcoin, a cryptocurrency project co-founded by Sam Altman, CEO of OpenAI, aims to create a global digital identity system called WorldID, using 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.

This case began with community reports of suspicious activities, leading to Komdigi's intervention to safeguard the national digital space. The ministry explained that 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 TDPSE certification for legal operations. Moreover, Worldcoin's services were found to be using the registration certificate of another legal entity, PT. Sandina Abadi Nusantara, a significant violation of transparency and legal accountability regulations.

This suspension is a preventive measure to prevent potential risks to the community. Komdigi will 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, Komdigi's Director General of Digital Space Supervision.

The ministry's statement further emphasized that the suspension of Worldcoin and WorldID's TDPSE is a serious matter, highlighting the importance of all parties involved in the digital space to adhere to legal provisions and regulations.

This case underscores the challenges faced by emerging markets in regulating new technologies while ensuring innovation and user protection. As the cryptocurrency industry continues to expand rapidly, legal compliance and respect for privacy remain non-negotiable.

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.