After detecting activities suspected of regulatory violations, Indonesia temporarily suspended the Certificate of Registration for the Electronic Systems Organizer (TDPSE) for World (formerly Worldcoin) and WorldID services.
This decision follows a preliminary investigation and emphasizes the importance of adhering to legislation in emerging markets such as Indonesia.
Indonesia suspends global operations
The Indonesian Ministry of Communications and Information Technology (Komdigi) announced the suspension of Worldcoin and WorldID operations. Komdigi's investigation revealed serious violations in the operation of these services for two reasons.
First, the company allegedly responsible for Worldcoin's operations in Indonesia is PT Terang Bulan Abadi. As required by Indonesian law, Terang Bulan Abadi did not register as an Electronic System Operator (PSE) and lacked the necessary TDPSE certification for legal operations.
Second, it was found that Worldcoin services used the registration certificate of another legal entity, PT. Sandina Abadi Nusantara. This is a significant violation of transparency and legal accountability standards.
According to Alexander Sabar, the Director General for Digital Space Oversight, this suspension was triggered by reports from the community about suspicious activities. Komdigi stated that it would summon representatives of the involved companies to clarify the allegations and rectify violations, in accordance with 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 avoid potential risks to the community. We will also summon PT. Terang Bulan Abadi for an official clarification soon," said Alexander Sabar.
Worldcoin (renamed to World) is a blockchain project co-founded by Sam Altman, the CEO of OpenAI. It aims to create a global digital identification system called WorldID. The project uses the Orb device to scan users' irises, generating unique biometric identifiers and rewarding users with Worldcoin (WLD) tokens.
Worldcoin plans to implement biometric identity verification in six U.S. cities and intends to distribute 7,500 Orbs across the country. Despite ambitions to create a promising decentralized identity verification system, Worldcoin has faced controversies worldwide.
The legal environment in Indonesia
Indonesia is developing a legal framework for digital activities, including cryptocurrencies and blockchain. The Personal Data Protection Act (PDP), adopted in 2022, establishes strict standards for the collection and use of personal data, including biometric data.
PSE regulations require all digital service providers to register with Komdigi and adhere to security standards. The Commodity Futures Trading Regulatory Agency (Bappebti) oversees activities related to cryptocurrencies and requires regular reporting from exchanges and projects. The case with Worldcoin is part of Komdigi's efforts to protect the national digital space.
The suspension of Worldcoin and WorldID by Indonesia serves as a clear warning that compliance with legislation and the protection of user privacy are mandatory conditions amid the rapid growth of the cryptocurrency industry. Projects like Worldcoin must ensure transparency in their operations and data processing to gain the trust of users and regulators. Projects that handle sensitive data, such as biometric data, must invest in security measures and clear communication to address community concerns.
The price of WLD has decreased by 0.56% in the last 24 hours, currently standing at $0.9477.
