Daniel Walker
Indonesia’s Ministry of Communication and Digital Affairs has officially halted operations of World, the controversial identity-focused crypto project formerly known as Worldcoin, citing serious legal and compliance concerns. The suspension comes in response to growing reports of suspicious activities tied to the project’s World ID verification system.
In a statement released Sunday, Indonesian authorities confirmed that the operating permit of World has been temporarily suspended while two affiliated local companies — PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara — are summoned for investigation.
Government Investigation Uncovers Regulatory Violations
According to Alexander Sabar, Director General of Digital Supervision, the action was taken as a precautionary measure to protect the public. Early findings from the ministry’s investigation revealed that PT. Terang Bulan Abadi was not listed as a registered electronic system provider, nor did it possess the necessary permits to operate legally in the country.
“Using another company’s legal identity to run a digital platform is a serious breach of national regulation,” stated Sabar.
Officials emphasized that operating under the license of a different legal entity raises significant legal red flags and could potentially expose users to risks, including data misuse and lack of accountability.
Global Expansion Under Fire as Privacy Fears Escalate
The controversy in Indonesia comes just days after World announced its U.S. expansion, where it plans to offer WLD tokens in exchange for biometric identity verification as part of its World ID initiative. The rollout will launch in six American cities: Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco.
However, privacy advocates remain wary, pointing out that Worldcoin’s global operations have consistently raised concerns about user data protection and biometric consent — issues that are now under intense scrutiny in Indonesia.
Can World Maintain Momentum Amid Regulatory Setbacks?
While World positions itself as a pioneering crypto project aiming to create a universal digital identity, its struggles with regulatory compliance and public trust are becoming increasingly evident. The Indonesian government’s decision to step in signals that other countries may follow suit if similar legal gaps or data protection issues are discovered.
