Indonesia has suspended operations of Worldcoin, the controversial cryptocurrency initiative co-founded by OpenAI CEO Sam Altman, amid growing global scrutiny over data privacy concerns. The Indonesian Ministry of Communication and Information Technology announced the decision on Sunday, citing public complaints and “suspicious activities” linked to the project.
Worldcoin, which launched in 2023, uses iris-scanning technology to generate a unique “World ID” for users, enabling them to verify their humanity in digital transactions. The initiative claims its biometric system can help combat bots and scams by ensuring users are real people, addressing a key challenge in the cryptocurrency ecosystem that often operates under pseudonyms.
Despite assurances from the company that users’ data is encrypted and securely stored, Worldcoin has attracted criticism and regulatory action across several countries. In Indonesia, the ministry’s director general for digital space supervision, Alexander Sabar, described the suspension as a “preventive measure” to safeguard the public from potential risks. The government has summoned Worldcoin’s local partners PT Terang Bulan Abadi and PT Sandina Abadi Nusantara for further clarification on their activities.
Indonesia’s move follows similar actions in other nations. Hong Kong’s Privacy Commissioner ordered Worldcoin to halt the collection of iris and facial images in May, citing violations of privacy laws. In Europe, Portugal suspended the project in March 2024 due to concerns over the protection of minors’ data. Weeks earlier, Spain’s data protection agency had already taken similar steps.
The repeated halts reflect a growing global debate over biometric data use and digital identity verification. Critics argue that while Worldcoin’s technology may offer innovative solutions to online identity problems, it poses significant privacy and ethical challenges, especially in jurisdictions with strict data protection regulations.
As digital currency adoption accelerates, regulators worldwide are increasingly emphasizing the need for stronger oversight of technologies that collect and store sensitive personal information. For Worldcoin, this growing scrutiny could hinder its mission to build a global identity and financial network.
The project’s future in Indonesia now depends on how well it addresses regulatory concerns underscoring the broader need for responsible innovation in the crypto and AI-driven tech industries.
