Indonesia Suspends Sam Altman’s Worldcoin Project Over Suspicious Activity and Registration Violations

Indonesia’s Ministry of Communications and Digital (Komdigi) has officially suspended the operations of Worldcoin, a digital identity project co-founded by OpenAI CEO Sam Altman, citing suspicious activity and violations of local registration laws.

In a statement released on May 4, Komdigi confirmed that the Electronic System Operator Certificates (TDPSE) for World and its identity-verification service World ID had been temporarily revoked. The suspension follows an initial probe revealing irregularities in the operational status and legal registrations of World’s Indonesian subsidiaries.

Allegations of Unauthorized Operations and Legal Misrepresentation

According to the ministry, World’s local entity PT Terang Bulan Abadi was allegedly operating without the required digital service provider registration, while PT Sandina Abadi Nusantara, another subsidiary associated with the project, is accused of misusing its registration to operate Worldcoin’s services.

“Worldcoin services are recorded using TDPSE in the name of another legal entity, namely PT Sandina Abadi Nusantara,” said Alexander Sabar, Director General for Digital Supervision at Komdigi. “Noncompliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation.”

Komdigi emphasized that all digital service providers must be registered under the correct legal framework to operate in Indonesia. The use of another company's registration to circumvent regulatory oversight is considered a significant breach of national digital law.

The ministry is now preparing to summon representatives from both PT Terang Bulan Abadi and PT Sandina Abadi Nusantara for a formal clarification process.

Alexander Sabar is the head of Indonesia’s newly established Digital Space Monitoring Directorate General. Source: Komdigi

Community Vigilance and Public Participation Encouraged

In response to the suspension, Komdigi is also encouraging active public engagement in monitoring the digital ecosystem. The ministry invited Indonesian citizens to remain vigilant and report any unauthorized or suspicious digital activities.

“We invite the public to help maintain a safe and trusted digital space for all citizens,” said Sabar. “The temporary suspension is a precautionary measure to mitigate potential risks to the community.”

He added that Indonesia remains committed to supporting technological innovation, but only when it aligns with local laws and prioritizes user protection.

Public Reaction: Divided Opinions on Worldcoin's Role

The community response to the suspension has been mixed. On platforms like Reddit, some users praised Indonesia for taking regulatory action against what they described as a questionable biometric data collection model.

“Good job Indonesia — at least somebody is standing up to that scam,” one user commented.

Others took a more nuanced view, noting that Worldcoin's model — which exchanges small amounts of cryptocurrency for biometric data like iris scans — could provide tangible economic relief in underbanked or low-income communities.

“If giving up your iris biometrics means you can feed your loved ones for a few weeks, that might be a trade worth making,” another Redditor noted.

Global Regulatory Headwinds Continue for Worldcoin

The controversy in Indonesia is the latest in a string of regulatory setbacks for the Worldcoin project since its high-profile launch in July 2023.

The platform, which uses custom-built “Orbs” to scan users' irises and verify their unique identity, aims to provide a universal digital ID and distribute free cryptocurrency to participants. However, the project has faced serious pushback over privacy concerns and the handling of sensitive biometric data.

Countries like Germany, Brazil, and Kenya have already raised flags over Worldcoin’s operations, with some going as far as launching formal investigations or temporarily banning the service.

Despite these challenges, World is pressing ahead with its global rollout. In May 2025, the platform officially debuted in the United States, launching in six cities as part of its phased expansion strategy.

What’s Next for Worldcoin in Indonesia?

Indonesia’s regulatory investigation is ongoing, and the future of World’s operations in the country now hinges on the outcome of the government’s discussions with its local partners. If the allegations of unauthorized operation and legal misrepresentation are substantiated, the suspension could evolve into a full revocation of licenses or lead to legal proceedings.

For now, the Indonesian government is signaling a cautious but firm stance: innovation is welcome, but only when it plays by the rules.