Indonesia Temporarily Suspends Worldcoin Over Legal Violations and Privacy Concerns Amidst Regulatory Scrutiny

• Indonesia suspends Worldcoin and WorldID over unregistered operations and misuse of another firm’s legal certification, signaling increasing regulatory scrutiny.

• Authorities point to significant privacy concerns related to biometric data collection, prompting urgent calls for compliance from the company.

• This action underscores Indonesia’s stringent digital regulations established under the 2022 Personal Data Protection (PDP) Law.

Indonesia halts Worldcoin and WorldID operations due to regulatory violations, raising important questions about privacy and digital compliance in crypto.

Indonesia Suspends World

Indonesia’s Ministry of Communications and Digital Affairs (Komdigi) has announced the suspension of Worldcoin and WorldID operations. This decision follows an investigation that brought to light two pivotal violations.

Firstly, PT Terang Bulan Abadi, the company operating Worldcoin in Indonesia, failed to register as an Electronic System Operator (PSE), lacking the necessary TDPSE certification for legal operations.

Secondly, Worldcoin’s services were found using the registration certificate of a different legal entity—PT. Sandina Abadi Nusantara—representing a significant breach of transparency and legal accountability.

According to Alexander Sabar, Director General of Digital Space Supervision, the suspension arose from community reports of questionable activities. Komdigi plans to summon representatives from the involved companies to provide clarifications regarding the allegations.

“This freezing is a preventive measure to eliminate potential risks to the community. We will also summon PT. Terang Bulan Abadi for official clarification in the near future,” stated Alexander Sabar.

Worldcoin, co-founded by Sam Altman, CEO of OpenAI, intends to establish a global digital identity system called WorldID. Utilizing the Orb device, it scans users’ irises to generate unique biometric identifiers, rewarding them with Worldcoin tokens (WLD).

The project plans to expand biometric identity verification to six U.S. cities, with aims to distribute 7,500 Orbs nationwide. However, despite its initiatives, Worldcoin faces scrutiny and controversies worldwide.

Indonesia’s Legal Environment

Indonesia is actively constructing a comprehensive legal framework for digital activities, with particular emphasis on cryptocurrency and blockchain innovations. The 2022 Personal Data Protection Law (PDP) sets rigorous standards for collecting and utilizing personal data, especially relating to biometric information.

According to PSE regulations, all digital service providers are required to register with Komdigi and adhere to security protocols. The Commodity Futures Trading Regulatory Agency (Bappebti) oversees cryptocurrency operations, enforcing mandatory reporting from exchanges and projects. This recent Worldcoin case illustrates Komdigi’s commitment to maintaining oversight over the national digital landscape.

The suspension of Worldcoin and WorldID serves as a potent reminder that legal compliance and user privacy safeguarding are essential amid the rapid expansion of the cryptocurrency sector. Initiatives like Worldcoin must prioritize operational transparency and data management to foster trust among investors and government agencies. Companies dealing with sensitive data, such as biometrics, should invest in robust security measures and ensure clear communication to address community concerns.

Additionally, the WLD price has decreased by 0.56% in the past 24 hours, currently standing at $0.9477.

Conclusion

This suspension highlights the critical need for compliance in the emerging cryptocurrency space, particularly regarding user privacy and operational transparency. Without adhering to regulations, projects such as Worldcoin risk jeopardizing their operations and credibility internationally.