Shortly
- Indonesian regulators suspended the biometric ID Project World operations in Indonesia.
- World is accused by regulators of not having registered for the correct license.
- Despite successful launches worldwide, regulators in a number of countries have pushed back against the firm's activities.
Worldcoin was suspended from operating by Indonesian authorities, who claim the blockchain company may have broken its own regulations.
World is led by Sam Altman (CEO of OpenAI creator of ChatGPT), and offers its users small amounts of WLD tokens in exchange for scanning biometric data with one of Orb’s Orb devices.
Alexander Sabar (Director General, Digital Space Supervision) said that reports of “suspicious behavior” in the project led to the suspension. Sabar described the action as “a measure taken to avoid potential dangers to the community.”
The official announcement alleged that the Indonesian subsidiary operating World in the country—PT Terang Bulan Abadi—has not been properly registered as an Electronic System Organizer (PSE), and did not have the Electronic System Organizer Registration Certificate (TDPSE) required by Indonesian law as a result.
According to the announcement, World has used a TDPSE on behalf of another entity called PT Sandina Abadi Nusantara. Regulator has called both entities for clarification.
Sabar said that “non-compliance of registration obligations, and using the identit of another legal entity for digital services are serious violations.”
He said: “We encourage the public to contribute in maintaining a trusted and safe digital space for citizens.”
World Roll-out Hits Roadblocks
This isn’t the first time that regulators have clamped down on World's activities.
In December last year, German regulators ordered the firm to implement a GDPR-compliant data deletion protocol, while a month later, Brazil's National Data Protection Authority (ANPD) levied a ban on the company from operating in the country, claiming its payouts could influence consumer behavior in unfair ways.
It was only a matter of months before the Kenyan government banned it from operating. Politicians in Kenya criticized their business practices, and called them “a criminal gang.” The company resumed its operations again in June 2024.
World has lost its access to Indonesia’s 280-million market but, at the very least, it is growing in terms of potential customers. World launched its service earlier this week in six American major cities: Atlanta, Austin Los Angeles Miami Nashville and San Francisco. Before recently, Americans weren’t allowed to use their WLD Tokens for payment.
The firm has also rolled out a number of integrations in recent days, including Tinder owner Match Group and prediction market Kalshi, along with a Visa card and charges for applications using World ID services.
