Tools for Humanity (TFH), the developer behind Worldcoin, has voluntarily paused its identity verification services in Indonesia following a regulatory freeze by the Ministry of Communication and Digital Application, which has affected both Worldcoin and its World ID product.

In an official statement released on Monday, May 5, 2025, TFH said it is temporarily halting services while awaiting clearer guidance on licensing and regulatory compliance.

“We look forward to continuing the constructive and supportive dialogue we’ve built over the past year with government authorities. If there are any shortcomings or misunderstandings regarding our licensing, we are committed to addressing them,” the company said in a statement as quoted on Monday, May 5, 2025.

TFH acknowledged that the introduction of new technologies like Worldcoin often sparks public concern − much like the early days of mobile phones, cars, and computers. However, the company expressed confidence that with a cautious and transparent approach, its human verification system can offer meaningful benefits in the digital age, particularly against identity theft, deepfakes, and artificial intelligence (AI)-driven disinformation.

“As the creators of the World protocol, we’ve engaged deeply with governments to ensure regulatory compliance and conducted public education efforts through press briefings, events, and campaigns prior to launching our services,” TFH said.

The company emphasized that World ID’s identity verification process does not store users’ personal data. Instead, users retain full control over their biometric information, which TFH and Worldcoin claim is inaccessible even to the company itself.

Worldcoin uses a proprietary device called the Orb to scan a person’s face and eyes and convert that data into a unique digital identity. This biometric data − which can include fingerprints, voice patterns, facial scans, iris images, or even DNA − is securely stored within the World App, not on the Orb device.

The company asserts that its system is based on “Proof of Human” authentication and does not require collecting users' names, addresses, or national identification numbers (NIK).

Worldcoin, introduced by OpenAI CEO Sam Altman in 2023, began operations in Indonesia in February 2025 and has since expanded to several major cities.

Ministry of Communication and Digital Application's temporary suspension comes in response to public reports of suspicious activities related to Worldcoin and World ID services. On May 4, 2025, Alexander Sabar, Director General of Digital Space Oversight, said the measure was taken as a preventive measure to safeguard the public.

Preliminary investigations revealed that PT Terang Bulan Abadi, one of Digital Space Oversight,the companies operating Worldcoin services in Indonesia, is not registered as an official Electronic System Provider (PSE) and lacks the required TDPSE (Electronic System Operator Certificate Registration) license. Another entity, PT Sandina Abadi Nusantara, was found to be providing the digital services under its legal identity.

“These are serious violations,” Alexander said, emphasizing that using another legal entity’s credentials and failing to register properly contravene Government Regulation No. 71/2019 and Ministerial Regulation No. 10/2021 on digital service operations in Indonesia.

The ministry is expected to summon both companies involved to clarify their roles and respond to the alleged regulatory breaches.