Indonesia suspends eye-scanning Worldcoin crypto project after reports of suspicious activities.

Monday, May 5, 2025 - Indonesian authorities have suspended operations of Worldcoin, the cryptocurrency project co-founded by OpenAI CEO Sam Altman, amid growing global scrutiny over data privacy concerns. 

The suspension, announced Sunday by the Ministry of Communication and Digital, follows complaints from the public regarding suspicious activities linked to the platform, which uses biometric data to verify users' identities.

Worldcoin, launched in 2023, allows users to scan their iris patterns to create a unique "World ID" that proves their humanity and facilitates digital transactions. The company maintains that the biometric data collected is encrypted and securely stored. However, privacy advocates and regulators in multiple countries have raised alarms over the project's handling of sensitive personal data.

Alexander Sabar, Director General for Digital Space Supervision at Indonesia’s communication ministry, said the move to freeze Worldcoin's activities is a preventive step to mitigate risks to the public. He added that the government will summon the platform’s local affiliates, PT Terang Bulan Abadi and PT Sandina Abadi Nusantara, to provide clarification on their operations in the country.

Worldcoin has positioned itself as a solution to one of the cryptocurrency sector’s persistent problems—verifying identity in a system that traditionally relies on pseudonyms, leaving it susceptible to bots and fraudulent actors. But its methods have triggered official concerns in several jurisdictions.

In May 2023, Hong Kong's Privacy Commissioner for Personal Data ordered Worldcoin to cease collecting iris and facial scans, citing violations of local privacy laws. Similar actions followed in Europe. Portugal’s data protection agency suspended the project in March 2024 over data protection concerns involving minors. That move came just weeks after Spain issued a similar suspension, intensifying scrutiny of the initiative across the European Union.

The Indonesian government’s decision marks the latest in a series of regulatory challenges facing Worldcoin as authorities around the world grapple with the implications of biometric data use in digital financial services.