Sam Altman’s ambitious Worldcoin (WLD) project is facing mounting regulatory pressure globally, with Indonesia being the latest nation to halt its operations. Data watchdogs in the Southeast Asian country have flagged alleged violations, mirroring concerns raised in several other parts of the world regarding the project’s iris-scanning technology and data handling practices. Despite these international headwinds, Worldcoin continues its rollout in major U.S. cities.
Indonesia Pulls the Plug on Worldcoin’s Iris Scanning
Indonesia’s Ministry of Communications and Digital Affairs (Komdigi) has issued a freeze on Worldcoin’s (WLD) and its World ID face-scanning activities within the nation. This decisive action follows public reports of “suspicious activity” surrounding the project. Komdigi’s statement on May 4, 2025, further alleges that PT. Terang Bulan Abadi, the Indonesian arm of Worldcoin, failed to register as an Electronic System Operator (PSE) and lacked the necessary certification to conduct legal business.
Adding to the complexity, it was discovered that Worldcoin’s services in Indonesia were operating under a registration certificate belonging to a separate entity, PT. Sandina Abadi Nusantara. Representatives from both firms are now being summoned by authorities to address these serious allegations. Alexander Sabar, Director General of Digital Space Oversight, emphasized that these regulatory oversights constitute a “serious violation” of Indonesian law. He urged citizens to exercise caution and report any unauthorized digital services.
Global Resistance to Worldcoin’s Biometric Data Collection
Indonesia’s move adds to a growing list of countries that have raised concerns and taken action against Worldcoin’s unique method of identity verification through iris scans. The project’s core technology, a spherical device known as the Orb, captures biometric data in exchange for WLD tokens, a practice that has consistently sparked privacy and data protection anxieties worldwide.
Kenya was among the first to push back, suspending Worldcoin’s operations in 2023 after a significant number of citizens enrolled in the program. Spain followed suit in March 2024, citing breaches of the European Union’s General Data Protection Regulation and subsequently ordering the deletion of collected data. Portugal, Germany, South Korea, Hong Kong, Brazil, and Colombia have also launched investigations and banned the firm’s biometric data-gathering activities.
U.S. Expansion Amidst International Scrutiny
Despite the increasing regulatory challenges and operational halts across the globe, Worldcoin continues to expand its presence in the United States. The company is actively rolling out its iris-scanning Orb technology in six major U.S. cities, demonstrating a continued push for adoption in a key market.
This expansion occurs against a backdrop of intense scrutiny and outright bans in numerous other countries, highlighting the divergent regulatory landscapes and public perceptions surrounding biometric data collection for digital identity. The contrasting approaches underscore the ongoing debate about the balance between technological innovation and individual privacy rights in the digital age.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
