World Network and WorldID Face Indonesia Ban Due to Data Privacy Violations

Highlights:

• Indonesian authorities have temporarily banned World Network and WorldID operations in the country.
• The regulators cited a data privacy breach as the reason for the suspension.
• The nation’s ministry also accused World Network of failing to register as an Electronic System Organizer in Indonesia.

Indonesia has temporarily halted World Network (previously Worldcoin) and WorldID operations, citing registration and licensing violations. The nation’s Ministry of Communication and Digital announced the ban in a May 4 press release.

According to the ministry, the temporary suspension entails freezing World Network and WorldID Electronic System Organizer Registration Certificate (TDPSE). In addition, the ministry will summon PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara, the two entities championing World Network and WorldID operations in Indonesia, to clarify the public allegations against their platforms.

Indonesia’s Director General of Digital Space Supervision, Alexander Sabar, reacted to the development. He noted that the government’s intervention became necessary following growing reports accusing World Network and WorldID of suspicious activities. He added that the temporary operation suspension will prevent potential risks to Indonesian communities.

Worldcoin dan WorldID dibekukan sementara oleh Kementerian Komdigi

Pembekuan izin ini dilakukan menyusul adanya laporan masyarakat mengenai aktivitas mencurigakan dari layanan digital itu.#WorldCoin #WorldApp #WorldID pic.twitter.com/eLzv69XhnI

— Kompas.com (@kompascom) May 5, 2025

Investigation Findings

Following investigations, Indonesian authorities discovered that PT. Terang Bulan Abadi is not a registered Indonesian Electronic System Organizer (PSE). Hence, it lacks a TDPSE. In addition, the regulators accused World Network of using an operation permit belonging to another entity named PT. Sandina Abadi Nusantara.

Alexander emphasized:

“Non-compliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation.”

The Director General added that the ministry remains committed to fair digital ecosystem regulation. He also noted that the regulators’ efforts are geared towards protecting citizens’ interests by protecting the country’s digital assets space. In addition, he urged community members to remain vigilant while assisting the government to identify unregistered firms operating in the Asian nation.

Alexander added:

“Komdigi also appeals to the public to remain vigilant against unauthorized digital services and to immediately report suspected violations through the official public complaint channel.”

Kementerian Komunikasi dan Digital membekukan sementara Tanda Daftar Penyelenggara Sistem Elektronik (TDPSE) layanan Worldcoin dan WorldID.

Direktur Jenderal Pengawasan Ruang Digital, Alexander Sabar, menjelaskan bahwa langkah ini diambil menyusul laporan masyarakat terkait… pic.twitter.com/ONQYPcw74Y

— Narasi Newsroom (@NarasiNewsroom) May 4, 2025

Other Facts to Back Violation Claims

In a separate tweet, a verified X handle conversant with the temporary ban highlighted some facts to support the regulators’ action. According to the X post, Indonesia’s ministry is seemingly worried about potential citizens’ data misuse by World Network and WorldID.

The X handle argued that World Network’s project revolves around obtaining citizens’ unique identities from their iris scan and storing them on the blockchain. Meanwhile, World Network and WorldID were once accused of offering Bekasi residents IDR 800 thousand in exchange for permission to record their retinal data.

These actions were deemed consumer rights abuse, leading to investigations into World Network’s operations. Moreover, several countries, including France, Spain, South Korea, and the State of New York, have suspended World Network operations, citing similar concerns raised by the Indonesian authorities. While the ban remains temporary, further investigations will determine the ministry’s next line of action.

Jadi, kenapa izin Worldcoin dibekuin sama Komdigi?

Karena Komdigi khawatir sama potensi penyalahgunaan data biometrik oleh Worldcoin & WorldID. Fakta lain 👇:

1. Inti project Worldcoin itu scan iris mata buat dapet identitas digital unik yg disimpan di blockchain

2. Waktu…

— Bittime (@bittimexchange) May 5, 2025

Worldcoin Records Slight Price Drop

Worldcoin (WLD) is valued at about $0.919, following a 3.1% decline in the past 24 hours. Within the same timeframe, WLD fluctuated between $0.9178 and $0.962, highlighting the token’s recent struggles.

Other extended-period statistics showed that WLD dropped 21.5% 7-day-to-date and 82.9% year-to-date. However, its 14-day-to-date and month-to-date variables displayed upswings of about 14.5% and 20.4%, respectively. As a result of the decline, WLD’s market capitalization dropped to $1.2 billion. Similarly, its 24-hour trading volume depreciated 0.11% to about $134.8 million.