Indonesia has hit pause on Sam Altman’s ambitious digital identity project, World—formerly known as Worldcoin—amid suspicions of registration improprieties. The Indonesian Ministry of Communications and Digital (Komdigi) announced on May 4 that it had temporarily suspended the project’s Electronic System Operator Certificate Registration (TDPSE), citing “suspicious activity” and alleged violations of registration protocols.
Regulatory Crackdown
Komdigi’s decision came after preliminary investigations revealed that World’s local subsidiaries, PT Terang Bulan Abadi and PT Sandina Abadi Nusantara, might have flouted Indonesian digital laws. PT Terang Bulan Abadi allegedly operated without the requisite TDPSE, while PT Sandina Abadi Nusantara is accused of legal misrepresentation. In Indonesia, it’s non-negotiable—all digital service providers must obtain electronic registration to operate legally.
Alexander Sabar, Komdigi’s director general for digital supervision, didn’t mince words. “Noncompliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation,” he stated. Sabar’s stern stance underscores the ministry’s commitment to maintaining the integrity of Indonesia’s digital ecosystem.
Community and Expert Reactions
This suspension has ignited a spectrum of responses from the community and experts alike. On platforms like Reddit, opinions are sharply divided. Some applaud the crackdown as a necessary step to curb what they perceive as potential exploitation. “Good job Indonesia—at least somebody is standing up to that scam,” exclaimed one user, echoing a sentiment of caution against unchecked digital ventures.
Conversely, others argue that the benefits of World’s offerings could be significant for the local populace. As one user noted, “If giving up your iris biometrics means you can feed your loved ones for a few weeks, that might be a trade worth making.” This highlights a broader debate about the balance between privacy concerns and practical benefits in emerging markets.
A Global Context
World’s tumult in Indonesia is not an isolated case. Since its inception in July 2023, the project has faced skepticism from regulators worldwide, including in Germany, Kenya, and Brazil. These countries have raised alarms over the potential risks associated with the biometric data gathered from users—a concern that resonates with digital rights advocates globally. For more on the project’s global expansion, see our coverage of Sam Altman’s eye-scanning crypto project World launches in US.
In fact, just last month, World debuted in the United States, initially rolling out its digital identity technology in six cities. This expansion marks an ambitious step for Altman’s project, but it also raises the stakes for regulatory compliance across diverse jurisdictions. As explored in our recent article, Sam Altman’s World Crypto Project Launches in US With Eye-Scanning Orbs in 6 Cities, this move highlights the project’s bold strategy to capture new markets.
Looking Ahead
As World navigates these turbulent waters, the focus shifts to Indonesia’s next moves. Komdigi plans to summon the local subsidiaries for further clarification on the alleged violations. The outcome of these discussions could set a precedent for how emerging digital identity solutions are regulated in Southeast Asia—a region ripe with potential but also fraught with regulatory complexities.
For the digital identity sector, Indonesia’s actions underscore the importance of compliance and transparency. Projects like World must tread carefully, balancing innovation with adherence to local laws. Skeptics and advocates alike will be watching closely, raising questions about whether this model of digital identity can truly thrive on a global scale.
The road ahead is uncertain. But one thing’s clear: in the world of digital identity, regulatory scrutiny is not just a possibility—it’s a certainty.
Source
This article is based on: Indonesia suspends Sam Altman’s World project over suspicious activity
Further Reading
Deepen your understanding with these related articles:
- Movement Labs Suspends Rushi Manche Amid Coinbase Delisting, Token-Dumping Scandal
- Coinbase Leaps Into Supreme Court Case in Defense of User Data Going to IRS
- Crypto Coalition Tells SEC Staking Is ‘Essential Good,’ Not a Security
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
