In brief
- Indonesian regulators have suspended biometric ID project World’s operations in the country.
- The regulators claim World failed to register for the proper license.
- Despite successful launches worldwide, regulators in a number of countries have pushed back against the firm’s activities.
World, formerly Worldcoin, has been hit with a suspension by Indonesian regulators, who allege the blockchain start-up may have committed a “serious violation” of its regulations.
Led by Sam Altman, CEO of ChatGPT creator OpenAI, World offers users small payments of its crypto token (WLD) in exchange for scanning their biometric data via one of its Orb devices.
Alexander Sabar, Director General of Digital Space Supervision, said the suspension was due to reports of “suspicious activity” by the project. Sabar called the move “a preventive measure to prevent potential risks 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.
The announcement claims World used a TDPSE in the name of another legal entity, PT Sandina Abadi Nusantara. Both legal entities have been summoned by the regulator to provide clarification on the alleged violations.
“Non-compliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation,” said Sabar.
He added: “We invite the public to help maintain a safe and trusted digital space for all 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.
The start-up was banned for just under a year in Kenya, with local politicians criticizing its business practices and even calling the company “a gang of criminals,” before it resumed operations in June 2024.
However, though World may have lost access to the 280 million-strong Indonesian market, at least temporarily, its potential user base is expanding. World rolled out its service in six major American cities earlier this week: Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco. Until recently, Americans were not allowed to receive their WLD tokens as 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.
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