Indonesia halts Sam Altman’s worldcoin project amid suspicious activity concerns

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Indonesia’s digital ministry is conducting an investigation into World’s local operators, alleging suspicious activity and breaches of registration rules, while also requesting public feedback on the matter.

The digital identity initiative World, formerly referred to as Worldcoin and led by OpenAI CEO Sam Altman, is encountering difficulties in Indonesia following the temporary suspension of its registration certificates by local regulatory authorities.

The Indonesian Ministry of Communications and Digital (Komdigi) suspended the Electronic System Operator Certificate Registration (TDPSE) for World and World ID due to concerns over suspicious activity and alleged breaches of registration requirements, as the ministry announced on May 4.

Following the suspension, Komdigi expects to summon World’s local subsidiaries—PT Terang Bulan Abadi and PT Sandina Abadi Nusantara—to offer clarification regarding the alleged violations, according to the ministry’s statement.

Preliminary findings allege that PT Terang Bulan Abadi, a local entity of World, was operating without a valid TDPSE. Meanwhile, authorities suspect PT Sandina Abadi Nusantara—the subsidiary World used to deliver its services—of involving itself in legal misrepresentation.

Indonesia Mandates Registration for All Digital Service Providers

In the statement, Komdigi emphasized that all digital service providers operating in Indonesia must complete electronic registration, in compliance with national regulations.

The authority noted that utilizing another entity’s registration constitutes a significant violation of Indonesia’s digital operations law.

In the announcement, Alexander Sabar, Komdigi’s director general for digital supervision, stated that “Worldcoin services have been recorded under a TDPSE registered to a different legal entity, specifically PT Sandina Abadi Nusantara,” and he further added:

Noncompliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation.

Call for Community Engagement

According to Sabar, authorities implemented the temporary suspension of World in Indonesia as a precautionary step to mitigate possible risks to the community.

He stated that the digital ministry remains dedicated to regulating the digital ecosystem with fairness and rigor to safeguard the integrity and security of the national digital environment.

Proper oversight, according to Sabar, will require active involvement from the community. He encouraged the public to contribute to maintaining a secure and trustworthy digital environment for all citizens. Additionally, Komdigi urged individuals to stay alert regarding unauthorized digital services and to promptly report any suspected violations through the official public complaint channel.

The action taken by Komdigi has prompted a divided response within the community.

One Reddit user commented that the action was commendable, stating, “Good job Indonesia — at least somebody is standing up to that scam.”

In contrast, others responded by suggesting that World’s presence in Indonesia could offer potential advantages for the broader population.

Another Reddit user remarked that, “If surrendering your iris biometrics allows you to provide for your loved ones for several weeks, it could be a trade worth considering. Ultimately, it depends on what holds the greatest importance to you.”

The latest developments concerning World in Indonesia follow the platform’s U.S. launch in May 2025, during which its digital identity technology was introduced across six cities.

Since World’s launch in July 2023, several global regulators have expressed resistance to its operations. Countries such as Germany, Kenya, and Brazil raise concerns about the potential risks associated with handling users’ biometric data.

Marton K.
Marton K.https://thecoingraph.com
Marton is seasoned crypto and finance journalist with over four years of experience. He has contributed to several high-profile outlets.

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