Worldcoin Faces Shutdown in Indonesia After Permit Violations

Indonesia Suspends World’s Operations After Concerns Over Legal Violations

Indonesia’s Ministry of Communication and Digital has suspended the operating permit of World. The project was formerly known as Worldcoin. It was co-founded by Sam Altman, the CEO of OpenAI. The decision came after reports of suspicious activities linked to the project. These activities involved Worldcoin’s identity program, World ID.

The ministry has requested the presence of two local operators. These are PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara. Officials want to hear explanations from both companies. The ministry suspects they may have violated electronic system operation rules. This step is part of a broader review of the project’s legality and safety for Indonesian users.

The suspension's justification was provided by Director General for Digital Supervision Alexander Sabar. He said it was a preventive measure to protect the public. The decision follows growing concerns that the project may not have met legal and regulatory standards in the country. The goal is to avoid risk and ensure digital services follow proper procedures.

Early investigations uncovered some major issues. As an operator of an electronic system, PT. Terang Bulan Abadi was not registered. The company also did not have a valid permit to operate. Investigators found the project was being run under a license belonging to another legal entity. This is a clear violation of Indonesia’s digital service regulations.

According to the ministry, using another company’s license is a serious problem. Every digital service must use its own legal identity when operating. Failing to do so breaks compliance laws. It also raises questions about who is truly responsible for the project. This kind of misstep weakens trust in the service and risks the privacy and data of users.

Worldcoin’s Controversial Global Expansion

The situation in Indonesia comes shortly after World announced a U.S. expansion. According to the project, WLD tokens will soon be available to Americans. When they register for a World ID and authenticate themselves, this will take place. Six American cities will see the start of the deployment. These include San Francisco, Miami, Nashville, Los Angeles, Austin, and Atlanta. 

Source: X

World’s operations have already drawn criticism in other countries. Many people are worried about data privacy. The project asks users to provide sensitive biometric data in exchange for crypto. This has led to backlash in places like Kenya, Germany and France. Now, Indonesia joins that list, taking early action to look into the project’s activities before more users join.

At this point, World has not responded to the concerns raised by the Indonesian government. The Block reached out for comment but has not received a reply. Without answers, many observers feel the situation remains unclear. People want to know more about how their data will be used and protected.

Final Thoughts

Indonesia is taking a cautious approach. By pausing operations and demanding answers, the country hopes to protect its people from possible digital harm. The move sends a strong message to other crypto and NFT projects. Local rules must be followed. Transparency and proper registration are not optional. As the global crypto space grows, countries are stepping up their oversight to keep users safe.