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Home News

Indonesia Suspends Worldcoin Over Regulatory Breach

5 May 2025
in News, Regulation
Reading Time: 4 mins read
107 6
source: en.tempo.co

source: en.tempo.co

Last updated on May 8th, 2025 at 03:47 pm

Indonesia’s Ministry of Communication and Digital (Komdigi) has temporarily revoked the registration certificate of World Network, formerly known as Worldcoin, along with its WorldID services, following a surge of public complaints over allegedly suspicious activities linked to the platforms.

As part of its precautionary response, Komdigi announced plans to summon PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara, two local companies, who are tied to World Network and WorldID operations in Indonesia. This move, the ministry stated, aims to “prevent potential risks to the public.” Early findings from the investigation revealed that PT. Terang Bulan Abadi is not officially registered to provide digital services, while Worldcoin was found to be operating under a registration certificate belonging to an unrelated legal entity.

Highlighting the gravity of these violations, Alexander Sabar, Director General of Digital Space Oversight, stated that using another company’s identity and failing to meet registration obligations represents a “serious breach” of digital service regulations. He also urged the public to remain cautious of unauthorized platforms and to report suspicious services via Komdigi’s official complaint channels.

These developments in Indonesia echo earlier concerns raised by Brazilian regulators. Investigations revealed that World Network may have improperly influenced user consent by offering financial incentives in exchange for biometric data. Building on this, Brazil’s data protection authority, the Autoridade Nacional de Proteção de Dados (ANPD), cautioned that compensation in the form of native tokens such as Worldcoin (WLD) could compromise the validity of consent, particularly among vulnerable groups whose monetary rewards may more easily sway.

In response to the suspension, Tools for Humanity (TFH), the developers of Worldcoin, has issued the following statement—

“World has voluntarily paused its proof of human verification services in Indonesia and is seeking clarification on the terms of the relevant licenses and permits. We look forward to continuing the constructive and supportive conversations we’ve had over the past year with the government ministries concerned. If there are any shortcomings or misunderstandings with our permits we will certainly address them. New technologies are often met with skepticism and anxiety before they are adopted by mainstream society and regulatory stakeholders. The mobile phone, the automobile and the computer had hostile receptions when they were first introduced but with time they proved to be beneficial for society. This is why World has been very careful in introducing TFH to Indonesia, engaging in deep and lengthy discussions with the government, making sure that we complied with all existing regulations and even informing the public through press conferences, public events and educational campaigns, before we launched our service. What we do is to use technology to verify individual uniqueness in the AI era where misinformation and disinformation, including identity theft and deep fakes, is rife. We do this without retaining any personal information of individuals and instead put that information exclusively in the hands of the people who should own and control the data – you, the user. This information is not available to World nor its contributors such as Tools for Humanity.”

Meanwhile, Worldcoin is bolstering its Layer 2 blockchain, World Chain, through a new partnership with Oracle provider, RedStone. The integration is set to enhance the network’s data infrastructure, delivering high-quality, cost-effective Oracle services to developers building DeFi applications. Built on Optimism’s OP Stack, World Chain will now benefit from access to more than 1,250 real-time price feeds provided by RedStone, ensuring reliable market data while preserving Ethereum-grade security.

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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Tags: IndonesiaWorldcoin
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Jewel Buddy

Jewel Buddy

Buddy Jewel is a finance writer specializing in cryptocurrency news. With a keen eye on the latest developments in the digital asset space, I provides insightful and timely updates on the ever-evolving world of crypto.

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