Indonesian Authorities Freeze Worldcoin Service Permits Over Suspicious Activities

World (formerly known as Worldcoin), the digital identity and crypto project owned by Sam Altman, CEO of the American artificial intelligence research organization, has continued to face challenges from regulators, with the latest coming from agencies in Indonesia. An official release from the Ministry of Communication and Digital Affairs (Komdigi) of Indonesia revealed that the agency has frozen the Electronic System Organizer Registration Certificate (TDPSE) that authorizes World to offer services in the country.

According to Komdigi, agency officials have received public reports about suspicious activities and electronic system violations related to World services. The temporary freeze of the project’s TDPSE is a measure to prevent community risks and seek clarification on World’s services.

Indonesia Freezes World’s Electronic System Certificate

Komdigi’s Director General of Digital Space Supervision, Alexander Sabar, explained that there is a legal misrepresentation in World’s local subsidiaries. PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara. PT. Terang Bulan Abadi does not have TDPSE, while the other subsidiary has the certificate. However, both were operating in the country, with Worldcoin’s services recorded using the TDPSE registered under PT. Sandina Abadi Nusantara.

Indonesian regulations require every digital service provider to be legally registered as an Electronic System Organizer (PSE), have a TDPSE, and be responsible for their operational services to the public. PT. Terang Bulan Abadi has been violating this law as its operations have been recorded under PT. Sandina Abadi Nusantara. Sabar described World’s actions as a “serious violation.”

Since Komdigi is committed to ensuring the security of the national digital space, the ministry intends to summon the two subsidiaries to provide clarification on the alleged violations of the country’s electronic system provisions.

Worldcoin is Still Expanding

Since World was launched in July 2023, the company has faced scrutiny from multiple regulators. Its regulatory woes are especially with regards to its method of verifying users’ identities. Many agencies are concerned about the risks of the biometric data World has been collecting from users through the company’s orbs.

Regardless of the concerns, World has been expanding its presence to more countries, with the latest being the United States. A few days ago, World revealed it launched in six U.S. cities, allowing users to claim Worldcoin (WLD) tokens by verifying their identities through iris scans.

The post Indonesian Authorities Freeze Worldcoin Service Permits Over Suspicious Activities appeared first on Cointab.