Key Takeaways:
- Indonesia suspends Worldcoin and WorldID for regulatory concerns.
- PT Terang Bulan Abadi and PT Sandina Abadi summoned for clarification.
- Worldcoin faces mixed international responses: bans in Spain, adoption in Malaysia, launch in U.S.
Indonesia’s Ministry of Communication and Digital Affairs (KOMDIGI) has temporarily suspended the operations of Worldcoin and its associated platform, WorldID, citing regulatory non-compliance. The suspension follows public reports of suspicious activities related to these services.
According to the ministry’s Director General of Digital Space Supervision, Alexander Sabar, the decision is a preventive measure to mitigate potential risks to the public. “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,” Sabar stated on Sunday, May 4, 2025.
Government Cites Legal Breaches, Summons Firms Behind Worldcoin
Preliminary investigations revealed that PT Terang Bulan Abadi is not registered as an Electronic System Organizer (PSE) and lacks the necessary TDPSE (Electronic System Organizer Registration Certificate).
Additionally, Worldcoin services were found to be operating under a TDPSE registered to a different legal entity, PT Sandina Abadi Nusantara, raising concerns about the legitimacy of their operations.
Mixed Global Reactions to Worldcoin Rollout
Worldcoin project aims to create a global digital identity system using biometric data, specifically iris scans, to verify human identity. While the project has garnered significant attention and investment, it has also faced regulatory challenges worldwide due to concerns over privacy and data protection.
For instance, in March 2024, Spain’s data protection agency (AEPD) ordered Worldcoin to halt data collection, citing concerns over how it handled sensitive biometric information and the possible involvement of minors. Worldcoin has responded by filing a lawsuit challenging the ban.
Similarly, Colombia’s Superintendence of Industry and Commerce (SIC) launched an investigation into the project, alleging violations of national data protection laws and warning of potential sanctions, including fines and suspension of operations.
Despite pushback in countries like Spain and Colombia, Worldcoin has gained traction elsewhere, with Malaysia and the U.S. moving to adopt its biometric-based identity system
In Malaysia, the government has embraced Worldcoin technology. Through its tech agency MIMOS Berhad, it signed a Memorandum of Understanding with Worldcoin to incorporate its biometric verification system into the country’s digital infrastructure.
Meanwhile, in the United States, Worldcoin recently launched its services, introducing iris-scanning technology and integrating with platforms like Visa, Stripe, and Tinder. The move aligns with the current administration’s more crypto-friendly approach, signaling a shift from prior regulatory skepticism.
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