Indonesia Suspends Worldcoin’s Eye-Scanning Crypto Project Amid Regulatory Concerns

Indonesia has temporarily halted operations of Worldcoin, a controversial cryptocurrency initiative co-founded by OpenAI CEO Sam Altman. The project, which uses biometric iris scans to create a global digital identity called World ID, has faced increasing scrutiny worldwide.

Reasons for Suspension

The Indonesian Ministry of Communications and Informatics (Kominfo) announced the suspension on May 4, 2025, citing “suspicious activity” and violations of local regulations. Specifically, Worldcoin’s local subsidiary, PT Terang Bulan Abadi, was found to be operating without the required Electronic System Operator (PSE) registration. Additionally, the company was using a registration certificate from another entity, PT Sandina Abadi Nusantara, raising concerns about legal compliance and transparency. 

Global Regulatory Scrutiny

Indonesia’s action adds to a growing list of countries questioning Worldcoin’s operations. In 2023, Kenya suspended the project over privacy and financial security concerns. Subsequently, several European nations, including Spain and Portugal, imposed bans due to violations of data protection laws. These global actions highlight the increasing regulatory challenges faced by Worldcoin. 

Worldcoin’s Response

Worldcoin has expressed its commitment to complying with local laws and regulations. The company is currently engaging with Indonesian authorities to address the concerns raised and to seek a resolution that allows it to resume operations in the country. 

Implications for Users

For Indonesian users who have participated in World Coins iris-scanning process, the suspension means that their World ID accounts are temporarily inactive. The company has assured users that their biometric data remains secure and encrypted. However, the suspension may delay access to Worldcoin’s services and the use of its cryptocurrency token, WLD.The suspension of World Coins operations in Indonesia underscores the growing concerns over the use of biometric data in digital identity systems. As regulatory bodies worldwide continue to scrutinize such projects, the future of Worldcoin will depend on its ability to address legal and privacy issues while maintaining user trust.

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