Suspended Again: World's Biometric ID Activity Halted in Indonesia
Indonesia Halts Sam Altman's Eye-Scanning Global Venture
World, the blockchain startup led by Sam Altman, CEO of OpenAI, has hit a snag in Indonesia. The Indonesian authorities have suspended the company's operations in the country due to potential regulatory violations.
World, earlier known as Worldcoin, offers users small payments in its crypto token (WLD) in exchange for scanning their biometric data via their Orb devices. World's Indonesian subsidiary, PT Terang Bulan Abadi, was accused of operating without proper registration as an Electronic System Organizer (PSE) and lacking the Electronic System Organizer Registration Certificate (TDPSE) required by Indonesian law.
The Indonesian authorities claimed that the company used the TDPSE in the name of another legal entity, PT Sandina Abadi Nusantara, an allegation that both legal entities must now clarify. Alexander Sabar, Director General of Digital Space Supervision, described the suspension as a preventive measure to guard against potential risks to the public.
This isn't World's first brush with regulatory hurdles. Last year, German regulators ordered the company to implement a GDPR-compliant data deletion protocol, and Brazil’s National Data Protection Authority (ANPD) banned it from operating in the country. Although World lost temporary access to the Indonesian market, its prospective user base is growing. The startup recently expanded its services to six major American cities: Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco.
Meanwhile, World has also sealed some exciting partnerships. Tinder owner Match Group, prediction market Kalshi, and Visa card integrations are now part of the roster. Additionally, World began charging for applications using its ID services. Despite these setbacks, regulatory uncertainties seem to be the norm for the burgeoning blockchain ecosystem.
In the current global climate, licensing frameworks, jurisdictional compliance, and enforcement actions pose the main challenges. For instance, the EU's MiCA Regulation enforces standardized requirements for Crypto-Asset Service Providers (CASPs) across the EU, replacing disparate national regimes. Violations result in severe penalties, such as fines in the Czech Republic and Lithuania.
Crypto startups are increasingly seeking jurisdictions with clear guidelines, such as El Salvador, Argentina, Bosnia and Herzegovina, and Seychelles. Meanwhile, United States regulation remains unclear, with crypto assets facing conflicting classifications and delays in stablecoin legislation due to political gridlock.
To comply with evolving data protection frameworks, blockchain startups that leverage biometric technology will need to adhere to stringent consent and storage rules under GDPR in the EU, among other sector-specific regulations. Without regulatory clarity in biometric-blockchain integrations, startups like World will continue to grapple with compliance challenges.
For now, licensing violations and jurisdictional compliance issues seem to dominate the risk landscape. As these challenges evolve, so too will the strategies employed by blockchain startups to navigate this complex and ever-shifting landscape. Stay tuned to understand more about the business and regulatory dynamics shaping the blockchain industry in 2025 and beyond.
- Despite its recent suspension in Indonesia, World, a blockchain startup led by Sam Altman, continues to forge partnerships with companies like Tinder owner Match Group, prediction market Kalshi, and Visa, and has started charging for applications using its ID services.
- Regulatory uncertainties seem to be a recurring issue for World, as it previously faced Hurdles in Germany and a ban in Brazil. Now, the startup must clarify claims of operating without proper registration and using another legal entity's TDPSE in Indonesia.
- Similarly, blockchain startups that leverage biometric technology, like World, will need to adhere to stringent data protection rules under GDPR in the EU, among other sector-specific regulations, to comply with evolving data protection frameworks.
- crystal assets, including those used by World, face conflicting classifications and delays in stablecoin legislation in the United States, due to political gridlock.
- As blockchain startups navigate this complex landscape, they increasingly seek jurisdictions with clear guidelines, such as El Salvador, Argentina, Bosnia and Herzegovina, and Seychelles, to avoid licensing violations and jurisdictional compliance issues that pose significant challenges in the current global climate.
