Worldcoin Faces Regulatory Hurdles in Indonesia
Indonesia’s Ministry of Communication and Digital has taken action against World (formerly Worldcoin) and its digital identity platform, World ID, by temporarily suspending their operations. The ministry cited registration issues and possible violations of local electronic system rules as the reasons for the suspension.
In a statement released on May 4, the ministry announced the suspension of the Electronic System Organizer Registration Certificate (TDPSE) for both Worldcoin and World ID. The decision was made after inconsistencies were found in the project’s operations within the country.
The ministry pointed out that Worldcoin’s local affiliate, PT Terang Bulan Abadi, failed to register as a recognized Electronic System Organizer, a mandatory status for any digital platform operating legally in Indonesia. Instead, the project was operating under the license of another company, PT Sandina Abadi Nusantara, which raised concerns about identity misuse and compliance gaps.
The Director General of Digital Space Supervision, Alexander Sabar, stated that the ministry will summon both entities for further investigation. He emphasized that the suspension is a preventive measure to protect the public from potential harm posed by unregistered digital service providers.
Sabar also stressed the importance of digital platforms taking full responsibility for their activities and operating transparently within the legal framework of the country.
Worldcoin, despite facing regulatory challenges in multiple countries over the past year, has made significant advancements in its expansion efforts. The platform has recently launched its identity verification system in the United States, allowing residents in six cities to verify their identity through World ID.
Additionally, World has formed partnerships with companies like Visa, Tinder, Kalshi, and Morpho to explore new applications for its technology and increase adoption rates.
This latest regulatory hurdle in Indonesia adds to the challenges Worldcoin faces as it strives to establish a global presence. The project will need to address compliance issues and work closely with regulatory authorities to ensure its operations meet legal requirements in different jurisdictions.