Worldcoin’s ambitious plans hit a wall in Indonesia as regulators suspended its operations over serious compliance failures. The company’s creative attempt to operate through unauthorized registrations backfired spectacularly, with authorities particularly miffed about iris scan data collection practices. Local complaints triggered investigations, leading to a harsh regulatory slap. The fallout has industry players watching nervously – Indonesia’s stance could spark a domino effect across Southeast Asia. The full story reveals an even messier situation.
While Worldcoin’s ambitious global expansion hit snags worldwide, Indonesia just delivered its biggest regulatory slap yet. The Indonesian Ministry didn’t just tap the brakes – they slammed them, suspending Worldcoin’s Electronic System Operator Registration Certificate after discovering a mess of compliance failures that would make any regulator’s head spin.
Turns out, Worldcoin’s local subsidiary PT Terang Bulan Abadi was operating without the required TDPSE registration. Even better? They were borrowing someone else’s paperwork, piggybacking on PT Sandina Abadi Nusantara’s registration like a teenager using their sibling’s ID. Director General Alexander Sabar wasn’t amused, citing “serious violations” that probably kept him up at night. The consumer protection focus has driven authorities to take decisive action.
Worldcoin’s Indonesian subsidiary caught using another company’s registration – a regulatory sleight of hand that backfired spectacularly.
The timing couldn’t be worse for Worldcoin’s iris-scanning adventure. Public complaints had already triggered investigations into their data handling practices, and now they’re facing the full force of Government Regulation No. 71/2019 and Ministerial Regulation No. 10/2021. Not exactly light bedtime reading, but vital stuff when you’re collecting people’s biometric data. The company’s practice of paying for iris scans has particularly alarmed regulators concerned about data exploitation.
The Ministry isn’t playing around. They’re hauling both PT Terang Bulan Abadi and PT Sandina Abadi in for some uncomfortable conversations about their creative interpretation of regulatory requirements. It’s like being called to the principal’s office, except the stakes involve national security and public data protection.
This isn’t just a local hiccup – it’s part of a growing global skepticism toward Worldcoin’s operations. Kenya already raised eyebrows, and now Indonesia’s strict stance might inspire other ASEAN nations to take a closer look. The message is crystal clear: want to play in Indonesia’s digital sandbox? Better have your paperwork in order.
For Worldcoin, getting back in Indonesia’s good graces means addressing some serious compliance gaps. No shortcuts, no borrowing registrations, no creative interpretations of the rules. Until then, their ambitious plans for digital identity expansion in Southeast Asia’s largest market are sitting in regulatory timeout. Sometimes, even tech innovators have to learn things the hard way.
