Indonesian authorities have suspended Sam Altman’s crypto project World, formerly known as Worldcoin, following public reports of alleged suspicious activity and “serious violations” of its regulations.
World Hit With Service Suspension
On Sunday, Indonesia’s Ministry of Communication and Digital (Komdigi) temporarily suspended World and World ID’s Electronic System Organizer Registration Certificate (TDPSE) services.
In the announcement, the Director General of Digital Space Supervision, Alexander Sabar, explained that the measure was taken after public reports alleging suspicious activity related to the project’s services.
An initial investigation by Indonesian authorities revealed that PT Teran Bulan Abadi, the subsidiary for World’s services in Indonesia, hasn’t been registered as an Electronic System Organizer (PSE) and does not have a TDPSE as the laws and regulations require.
Meanwhile, the World service is registered using a TDPSE in the name of another legal entity, PT Sandina Abadi Nusantara. Sabar detailed that the suspension is a preventive step to prevent potential risks to the community, adding that the regulator will summon the crypto project’s Indonesian subsidiary, PT Terang Bulan Abadi, for official clarification soon.
Under the Government Regulation, every digital service provider in Indonesia must be legally registered and responsible for the company’s operational services to the public. “Non-compliance with registration obligations and the use of the identity of another legal entity to run digital services is a serious violation,” said Sabar.
Despite the scrutiny, World continues its global expansion, recently debuting in the US. As reported by Bitcoinist, the project has launched in six US cities: Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco, following the crypto-friendly regulatory shift in the country under the Trump administration.
Indonesia’s Crypto Landscape
The Director General of Digital Space Supervision stated that the Komdigi Ministry is committed to overseeing the ecosystem “fairly and firmly” to ensure the security of Indonesia’s digital assets space.
At the start of the year, Indonesia saw the transfer of the crypto industry’s supervision from the Commodity Futures Trading Agency (Bappebti), which has overseen digital assets since 2018, to the Financial Services Authority (OJK).
The transfer to OJK, effective since January 10, 2025, is expected to foster a more transparent and comprehensive regulatory framework that aligns with international standards after conducting in-depth studies on global practices in crypto regulation.
It’s worth noting that the Indonesian government has been criticized for its measures and cautious approach, including its ban on using cryptocurrencies as a direct payment method for goods and services, and its dual taxation on digital assets. Nonetheless, the country has remained one of the highest adoption rates in the world, ranking 3rd and surpassing the US and Russia by crypto trader numbers in 2024.
Sabar asked for the community’s help to maintain a safe and trusted digital space, as the active role of the crypto community is needed. “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,” he concluded.
Worldcoin (WLD) trades $0.90 in the one-week chart. Source: WLDUSDT on TradingView
