Update (May 5 at 3:27 pm UTC): This article has been updated to include comments from Niko Demchuk and Yarden Noy.

US President Donald Trump will host a gala dinner for top holders of his Official Trump (TRUMP) memecoin despite bipartisan criticism and renewed calls for impeachment.

In a May 5 Truth Social post, Trump announced that he will hold a gala dinner with major TRUMP holders on May 22. The announcement follows multiple US lawmakers expressing concern over the initiative.

In late April, Massachusetts Senator Elizabeth Warren called on government officials to address questions related to Trump’s memecoin and his media company. Controversies grew after Trump announced a dinner and White House tour for some holders of his TRUMP memecoin.

“President Trump’s announcement promises exclusive access to the presidency in exchange for significant investment in one of the President’s business ventures,” a letter co-signed by California Democratic Senator Adam Schiff read.

A call for impeachment over a memecoin

Also in late April, Senator Jon Ossoff expressed support for impeaching Trump during an April 25 town hall, citing the president’s plan to host the dinner for top TRUMP memecoin holders. He said:

“When the sitting president of the United States is selling access for what are effectively payments directly to him. There is no question that that rises to the level of an impeachable offense.”

Pro-crypto Senator Cynthia Lummis and at least one other Republican in Congress were reportedly also critical of Trump for offering the top holders of his memecoin a dinner and White House tour. Lummis, of Wyoming, reportedly said that the US president offering exclusive access to himself and the White House for people willing to pay for it “gives [her] pause.”

In a May 4 post on X, Warren claimed the Trump family’s stablecoin surged in market value due to a “shady crypto deal with the United Arab Emirates,” which involved settling the investment using USD1. She argued this raised serious national security concerns and warned against the Senate passing crypto-friendly legislation.

Warren expressed concerns around foreign involvement in the US president’s finances. She also suggested that the Senate should refrain from approving pro-crypto bills:

“The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption.“

Related: America’s crypto renaissance is already failing; but we can fix it

Source: Elizabeth Warren

Niko Demchuk, head of legal at crypto compliance firm AMLBot, told Cointelegraph that Senator Warren’s concerns over “pro-crypto” legislation underscore the ongoing tension between encouraging stablecoin innovation and addressing risks such as foreign influence and potential self-dealing by public officials. He added that lawmakers can implement safeguards like disclosure requirements, conflict-of-interest rules, and independent audits to strike a balance:

“These safeguards address Warren’s concerns by prioritizing transparency and accountability without stifling legitimate stablecoin development. They might ensure the U.S. remains a hub for responsible innovation while protecting against misuse by public officials or foreign actors.“

According to Yarden Noy, a partner at the crypto legal firm DLT Law, no regulatory or disclosure requirements currently apply to such stablecoin deals. “The president’s legal team can make a very strong case that no regulatory or disclosure requirements would apply here,“ he said.

Noy noted that some limitations and disclosures may apply, including a constitutional prohibition on emoluments, but their application in this case “is very questionable.” He added:

“The US should tackle the issue, not blame the technology being used.“

Senator Warren’s post included a clip from a recent interview during which Trump gave conflicting answers to whether he has profited from his memecoin launched in January, just days before he reentered the White House. During the clip, the president claims not to have “even looked” whether he profited off his endeavors.

Related: Elizabeth Warren joins call for probe of Trump over crypto tokens

The United Arab Emirates deal

On May 1, Abu Dhabi-based investment firm MGX used Trump–backed stablecoin USD1 to settle a $2 billion investment in Binance. According to CoinMarketCap data, the stablecoin’s market cap shot up from under $137 million on May 1 to nearly $2.13 billion on May 2.

USD1’s Market Capitalization. Source: CoinMarketCap

Eric Trump announced the deal during a panel discussion at Token2049 in Dubai. Trump, the son of the president, serves as executive vice president of the Trump Organization. He said during the event:

“The US is seeing that the financial world has to progress. It’s a joke. Why do banks run nine to five, Monday to Friday, with an hour and a half of lunch break? It doesn’t make sense.”

Much like the memecoin, the USD1 stablecoin also attracted its fair share of criticism. In early April, some US lawmakers went as far as to allege that Trump wanted to replace the US dollar with USD1.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Michael Saylor’s Strategy, one of the world’s largest corporate Bitcoin investors, slowed its BTC purchases last week as the cryptocurrency briefly surged above $97,000.

Strategy acquired 1,895 Bitcoin (BTC) for $180.3 million during the week from April 28 to May 4 at an average price of $95,167 per BTC, the firm announced in its latest Form-8 filing with the US Securities and Exchange Commission.

Strategy’s latest Bitcoin purchase is one of the smallest made by the company this year, alongside a comparatively meagre 130 BTC purchase in March.

Source: Michael Saylor

The latest buy is 87% less than the previous purchase of 15,355 BTC announced last Monday.

Semler boosts buying despite rising prices

While Saylor’s Strategy cooled its Bitcoin buying spree last week, others upped their appetite for BTC.

Semler Scientific, a publicly traded US healthtech firm, bought 167 Bitcoin for $16.2 million in the period from April 30 to May 2 at an average purchase price of $97,093 BTC.

Announced on May 5, the purchase by Semler was up at least 50% from the previous 111 BTC purchase by the firm announced on April 25.

Bitcoin price chart in the past 30 days. Source: CoinGecko

As of May 2, Semler held 3,634 BTC, acquired for an aggregate of $322.3 million at an average purchase price of $88,668 per BTC.

Semler’s Bitcoin holdings are considerably smaller than Strategy’s, which held 555,450 BTC as of May 4, acquired for $68,550 per BTC.

Strategy’s BTC gain surged to $5.8 billion by May 1

The new Bitcoin purchase by Strategy came shortly after the company announced its financial results for the first quarter of 2025 on May 1.

According to the update, Strategy achieved a 13.7% BTC yield, an indicator representing the percentage change of the ratio between its BTC holdings and assumed diluted shares. The yield is close to the 15% yield targeted by Strategy in 2025.

Source: Michael Saylor

Year to date, Strategy’s gains on its Bitcoin investments also reached $5.8 billion, in line with its annual target of $10 billion.

Additionally, Saylor said that the company has doubled its capital plan to $42 billion in equity and $42 billion in fixed income to purchase more Bitcoin.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Michael Saylor’s Strategy, one of the world’s largest corporate Bitcoin investors, slowed its BTC purchases last week as the cryptocurrency briefly surged above $97,000.

Strategy acquired a new batch of 1,895 Bitcoin (BTC) for $180.3 million during the week from April 28 to May 4 at an average price of $95,167 per BTC, the firm announced in its latest Form-8 filing with the US Securities and Exchange Commission.

Strategy’s latest Bitcoin purchase is one of the smallest made by the company this year, alongside a comparatively meagre 130 BTC purchase in March.

Source: Michael Saylor

The latest buy is 87% less than the previous purchase of 15,355 BTC announced last Monday.

Semler boosts buying despite rising prices

While Saylor’s Strategy cooled its Bitcoin buying spree last week, others upped their appetite for BTC.

Semler Scientific, a publicly traded healthtech firm in the US, bought 167 Bitcoin for $16.2 million in the period from April 30 to May 2 at an average purchase price of $97,093 BTC.

Announced on May 5, the new purchase by Semler was up at least 50% from the previous 111 BTC purchase by the firm announced on April 25.

Bitcoin price chart in the past 30 days. Source: CoinGecko

As of May 2, 2025, Semler held 3,634 BTC, acquired for an aggregate of $322.3 million at an average purchase price of $88,668 per BTC.

Semler’s Bitcoin holdings are considerably smaller than Strategy’s, which held a total of 555,450 BTC as of May 4, acquired for $68,550 per BTC.

This is a developing story, and further information will be added as it becomes available.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Binance co-founder Changpeng “CZ” Zhao has proposed Bitcoin and BNB as the first digital assets to build Kyrgyzstan’s national crypto reserves.

On May 5, Zhao shared on X that he had advised Kyrgyzstan to start with Bitcoin (BTC) and BNB (BNB) when building its national crypto reserve. In 2024, Forbes claimed that Zhao holds about 94 million BNB tokens, or 64% of BNB’s circulating supply. At the time of writing, these tokens are worth about $55 billion. 

The proposal followed Zhao’s earlier announcement that he had begun advising Kyrgyzstan’s National Investment Agency (NIA) on blockchain and crypto-related matters.

On April 3, Zhao confirmed he’s been officially and unofficially advising governments on crypto frameworks and blockchain solutions. The former Binance CEO said that he finds the work extremely meaningful. 

Source: Changpeng ZhaoBinance to launch crypto payments in Kyrgyzstan

A month after CZ announced his role in advising Kyrgyzstan, Binance announced a partnership with the country to launch a crypto payments service. 

On May 4, Binance signed a memorandum of understanding (MOU) with the NIA to introduce Binance Pay to the country, enabling crypto transactions. The partnership also aims to boost crypto education in the country, with Binance Academy set to work with government agencies to develop blockchain-focused educational programs. 

On April 17, Binance CEO Richard Teng said in a Financial Times interview that the exchange had been advising countries on crypto reserves. 

Kyrgyzstan has been making moves to become a digital asset-friendly jurisdiction. On April 17, Kyrgyzstan President Sadyr Zhaparov signed a law authorizing a central bank digital currency pilot project while giving the national currency’s digital form a legal tender status. 

Related: Pakistan appoints Changpeng Zhao as crypto adviser as adoption heats up

Kyrgyzstan reportedly plans a gold-backed stablecoin

The country also reportedly plans to launch a gold-backed stablecoin. The gold-backed stablecoin will be pegged to the United States dollar and called the Gold Dollar (USDKG). This will be backed by $500 million in gold provided by the country’s Ministry of Finance. 

Cointelegraph reached out to the country’s Ministry of Finance to confirm the reports but did not get a response before publication. 

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Binance co-founder Changpeng “CZ” Zhao has proposed Bitcoin and BNB as the first digital assets to form Kyrgyzstan’s national crypto reserves.

On May 5, Zhao shared on X that he advised Kyrgyzstan to start with Bitcoin (BTC) and BNB (BNB) when building its national crypto reserve. In 2024, Forbes claimed that Zhao holds about 94 million BNB tokens, about 64% of BNB’s circulating supply. At the time of writing, these tokens are worth about $55 billion. 

The proposal follows Zhao’s earlier announcement that he had begun advising Kyrgyzstan’s National Investment Agency (NIA) on blockchain and crypto-related matters.

On April 3, Zhao confirmed he’s been officially and unofficially advising governments on crypto frameworks and blockchain solutions. The former Binance CEO said that he finds the work extremely meaningful. 

Source: Changpeng ZhaoBinance to launch crypto payments in Kyrgyzstan

A month after CZ announced his role in advising Kyrgyzstan, Binance announced a partnership with the country to launch a crypto payments service. 

On May 4, Binance signed a memorandum of understanding (MOU) with the NIA to introduce Binance Pay to the country, enabling crypto transactions. The partnership also aims to boost crypto education in the country, with Binance Academy set to work with government agencies to develop blockchain-focused educational programs. 

Binance also said that the exchange had been advising multiple governments and jurisdictions on crypto-related policy. On April 17, Binance CEO Richard Teng said in a Financial Times interview that the exchange had been advising countries on crypto reserves. 

Kyrgyzstan has been making moves to become a digital asset-friendly jurisdiction. On April 17, Kyrgyzstan President Sadyr Zhaparov signed a law authorizing a central bank digital currency pilot project while giving the national currency’s digital form a legal tender status. 

Related: Pakistan appoints Changpeng Zhao as crypto adviser as adoption heats up

Kyrgyzstan reportedly plans a gold-backed stablecoin

The country also reportedly plans to launch a gold-backed stablecoin. The gold-backed stablecoin will be pegged to the United States dollar and called the Gold Dollar (USDKG). This will be backed by $500 million in gold provided by the country’s Ministry of Finance. 

Cointelegraph reached out to the country’s Ministry of Finance to confirm the reports but did not get a response before publication. 

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Cryptocurrency investment products attracted $2 billion in new inflows last week, according to the European investment firm CoinShares.

Global crypto exchange-traded products (ETPs) have added $5.5 billion in inflows in the past three weeks, according to the latest weekly report from CoinShares.

With the new inflows, total assets under management (AUM) in all crypto ETPs worldwide jumped 3.3% from $151 billion to $156 billion.

Although the positive trend has continued for the past three weeks, the latest weekly inflows were down 41% from last week’s $3.4 billion of inflows — the third-largest crypto ETP inflows on record.

Inflows slowed down despite new Bitcoin gains

The slowdown in crypto ETP inflows came despite Bitcoin (BTC) seeing some brief gains last week, with the price rising from about $94,300 on April 28 to an intraweek high above $97,000 on May 2, according to data from CoinGecko.

In the trading week from April 28 to May 2, Bitcoin saw $1.8 billion of inflows, down 43% from the week before.

Crypto ETP flows by asset as of May 3, 2025 (in millions of US dollars). Source: CoinShares

However, bearish investors increased positions as short Bitcoin ETPs saw a 300% spike in inflows compared to the previous week, up to $6.4 million from $1.6 million.

Altcoins Ether (ETH) and XRP (XRP) saw ETP inflows of $149 million and $10 million, respectively.

Related: BlackRock Bitcoin ETF buys $970M in BTC as inflows surge, boost market

With Bitcoin accounting for 98% of all year-to-date crypto ETP inflows, total inflows this year amounted to $5.6 billion as of May 3.

Inflows concentrated with BlackRock’s iShares

According to CoinShares data, crypto ETP inflows were highly concentrated with BlackRock’s iShares products, which saw as much as $2.7 billion last week.

Still, crypto ETPs by issuers like ARK Invest and Fidelity Investments were bleeding last week, with outflows amounting to $458 million and $201 million, respectively.  

Crypto ETP flows by issuer as of May 3, 2025 (in millions of US dollars). Source: CoinShares

Other issuers such as Bitwise, Grayscale and ProShares recorded minor outflows for their crypto ETP products last week, totaling $36 million, $31 billion and $25 million, respectively.

Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3

While many crypto ecosystems focus on decentralization as the core tenet of Web3, Aptos is seeing success with hybrid platforms that blend Web2 and Web3 technologies, commonly referred to as “Web2.5.”

In an interview at the Token2049 event in Dubai, Aptos’ head of ecosystem, Ash Pampati, told Cointelegraph that Web2.5 platforms are earning “tons of revenue” within Aptos. He noted that consumer-focused applications, in particular, are thriving in the network.

Web2.5 is a term used to describe platforms or applications that blend centralized Web2 experiences with decentralized Web3 elements. 

These applications avoid full decentralization, often drawing criticism for not fully embracing the Web3 vision.

Ash Pampati at the Token2049 media lounge in Dubai. Source: CointelegraphConsumer-focused Web2.5 platforms generate revenue on Aptos

Pampati told Cointelegraph that one of the trends he sees within the Aptos ecosystem is that founders want to build “great consumer experiences.” 

He said the Aptos network was built to support projects with almost a Web2-like scale. Because of its Meta origins, Aptos has a developer stack focusing on abstracting friction away from Web3. 

Pampati described this as more of a Web2 user experience “without sacrificing Web3 principles.” He said platforms that followed such models had found success within the ecosystem:

“We see a lot of great consumer Web 2.5 platforms emerging. So, those that are focused on distribution and those that are focused on fan loyalty are also generating tons of revenue because they’ve created great products.”

Pampati said the trend is mainly influenced by their developer stack and what the Aptos platform offers, which focuses on broad consumer applications. 

Related: From digital identity to outer space: Projects push crypto use cases

The challenge of attracting the next million users

While Web2.5 applications address some of the user experience problems for crypto and Web3, Pampati said that one of the challenges in the space remains the onboarding of non-crypto natives to the industry. 

“I think the biggest challenge is trying to predict the next catalyst that pulls forward the next million, 10 million users into crypto. I think there’s a lot of tendency to go and refight old wars,” Pampati told Cointelegraph, adding that founders often move back into concepts like memecoins and non-fungible tokens (NFTs).

Still, he said, finding the next catalyst to spur broader mainstream adoption will require creating something new. 

Pampati added that collaborating and motivating founders to “see through the corners and not just try to recreate what’s already been created before” remains a challenge. He said that founders should be prepared for the next catalyst.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Tether AI, the forthcoming artificial intelligence platform from stablecoin giant Tether, will feature payments in major cryptocurrencies, including USDt and Bitcoin.

Tether CEO Paolo Adroino took to X on May 5 to tease the imminent launch of Tether AI, the company’s new AI platform designed to offer “personal infinite intelligence.”

According to Ardoino, Tether’s AI platform will be integrated with USDt (USDT) and Bitcoin (BTC) payments, allowing users to make transactions directly through a peer-to-peer (P2P) network.

Source: Paolo Ardoino

The initiative builds on Tether’s December 2024 announcement that it was developing a website for the AI tool, targeting a launch by the end of the first quarter of 2025.

Support of “any hardware and device”

Ardoino emphasized that Tether AI will not use application programming interface (API) keys and will not depend on centralized control points.

Instead, Tether AI will offer a “fully open-source AI runtime” that will run on an “unstoppable peer-to-peer network,” and be “fully modular and composable.”

Additionally, Tether AI will be capable of adapting and evolving on “any hardware and device,” he said.

P2P crypto payments enabled with WDK

The announcement also said Tether AI’s P2P crypto payments will be “infused” with its open-source wallet development kit (WDK), launched in November 2024.

Tether’s WDK is a toolkit that enables developers to build mobile, desktop and web wallet applications, enabling self-custodial, or non-custodial, holding of USDt and Bitcoin.

An excerpt from Tether’s WDK announcement in November 2024. Source: Tether

Unlike custodial wallets, self-custodial wallet solutions allow users to control assets completely, eliminating reliance on third-party custody solutions for completing transactions.

Tether doubles down on AI

Tether AI is part of a broader strategy to expand the company’s footprint in artificial intelligence.

In April 2024, Tether announced company restructuring to introduce new divisions beyond stablecoin development, launching Tether Data, a dedicated unit focused on AI and P2P development.

Related: OpenAI ignored experts when it released overly agreeable ChatGPT

In February, Ardoino announced that its AI division was working on a series of AI apps, including AI Translate, AI Voice Assistant and AI Bitcoin Wallet Assistant.

Source: Paolo Ardoino (X post translated by Google)

According to Ardoino, Tether AI has one key goal of providing the “ideal technological foundation” to achieve the vision of AI described by Isaac Asimov, one of the most influential science fiction authors about AI, known for works such as I, Robot, The Robot Series and more.

“AI will, in the coming decades, become part of the very fabric of the universe,” Ardoino said in another X post, written in Italian.

Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3

Opinion by: Shane Molidor, Founder, Forgd

For years, launching a crypto project in the United States has been a maze of uncertainty. Legal ambiguity and a hostile regulatory environment have driven founders offshore, turning places like Switzerland and the Cayman Islands into global hubs for blockchain innovation. 

With Trump’s election, things finally started to change, with a US administration openly declaring its intention to be crypto-friendly. Yet, despite the rhetoric, nothing concrete has changed so far.

Launching a crypto project in the US is just as difficult as ever. US regulatory agencies continue to offer nothing but vague threats and “regulation by enforcement” lawsuits. America wants to be a leader in crypto, but, even under the Trump administration, it isn’t taking action to create the conditions that would make that happen. 

Killing crypto in America

Every crypto project faces the same fundamental problem: Achieving decentralization is critical to avoid regulatory scrutiny, but until a project launches its token, a degree of centralization is unavoidable.

The SEC’s outdated Howey test ensures that nearly every legitimate crypto project gets classified as a security. The logic is self-defeating. Projects can’t decentralize without launching a token, but launching a token in the US instantly puts them in the SEC’s crosshairs.

This isn’t just a theoretical issue; it has real consequences. Liquidity providers, essential for all new token launches, won’t engage with US-based projects because they assume their tokens will be classified as securities. Centralized exchanges refuse to list tokens issued from US entities for the same reason. Even decentralized exchanges face pressure from their legal teams to avoid actively seeding liquidity for American projects. The result? US founders are boxed out of the global crypto economy before they even get started.

Offshore jurisdictions are winning

This regulatory failure has spawned an entire cottage industry of offshore legal firms specializing in setting up token-issuing entities. With its FINMA no-action letter system, Switzerland has become a hotbed for crypto projects because it offers one of the few structured ways to get legal clarity on a token’s classification. The Cayman Islands and British Virgin Islands have also established themselves as crypto safe havens, providing flexible corporate structures that allow projects to operate with far less regulatory risk. 

Recent: US Treasury wants to cut off Huione over ties to crypto crime

The absurdity is that the actual work — the development, the hiring, the innovation — still happens in the US. The token issuance gets pushed offshore via “Associations” and “Foundations,” which serve non-profits operating independently of US-based development shops. American founders are forced to funnel money into unnecessary legal fees, overseas operators, and shell foundations to avoid the inevitable crackdown from US regulators. This isn’t just bad for crypto; it’s bad for America. Until it can be solved, the US will continue to hemorrhage talent, investment, and influence to less myopic jurisdictions.

Make America crypto-friendly

The US has spent years fumbling crypto policy, and now, even with an administration that claims to be pro-crypto, it’s still failing to deliver real change. The solution isn’t to promise capital gains tax exemptions on crypto, as some have suggested. That does little to ameliorate the punishing regulatory landscape US-based projects are forced to navigate. If the US truly wants to lead in crypto, it also must take the lead in providing regulatory clarity.

That means finally recognizing that the same regulations that have governed traditional financial markets can’t always be applied to crypto. The Howey test doesn’t work. Instead, the government must provide a new and functional legal framework for the crypto industry. 

It’s time for US legislators and regulators to acknowledge that crypto tokens can’t achieve decentralization instantaneously and almost always require the efforts of a team of core contributors to bootstrap initial growth and development. The federal government must devise a version of the Howey test that does not automatically classify every new crypto token as a security but instead allows tokens a grace period to decentralize. In conjunction with this, the US must establish new protections to ensure insiders aren’t unduly benefiting from crypto projects while they scale. 

In addition to swiftly ending the “regulation by enforcement” approach employed under Gary Gensler’s SEC, a tactic seemingly designed to gradually smother crypto activity in the US, the government must provide clear guidelines. It needs to be feasible for market makers to evaluate whether US tokens are commodities or securities with a degree of stability and predictability. This is the only way to end the blanket bans market makers have placed on US tokens and bring crypto development back to America.

America’s window of opportunity is closing

Crypto founders aren’t waiting for Washington to figure it out. Every day, without clear regulations, more crypto projects are incorporated offshore. The US doesn’t even need to “embrace” crypto. It just needs to stop actively driving it away.

If this administration truly wants to make the US the leader in crypto, it needs to move beyond campaign slogans and start fixing the fundamental problems that forced this industry offshore in the first place. And it needs to act fast. 

Opinion by: Shane Molidor, Founder, Forgd.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

OpenAI CEO Sam Altman’s digital identity project World, formerly Worldcoin, is facing challenges in Indonesia amid local regulators temporarily suspending its registration certificates.

The Indonesian Ministry of Communications and Digital (Komdigi) has halted the Electronic System Operator Certificate Registration (TDPSE) for World and World ID over suspicious activity and alleged registration violations, the authority announced on May 4.

After the suspension, Komdigi plans to summon World’s local subsidiaries, PT Terang Bulan Abadi and PT Sandina Abadi Nusantara, to provide clarification on the alleged violations, it said.

According to a preliminary investigation, World’s PT Terang Bulan Abadi was allegedly operating without TDPSE, while PT Sandina Abadi Nusantara — the one World was using for providing its services — is allegedly involved in legal misrepresentation.

Indonesian law requires registration by all digital service providers

In the statement, Komdigi emphasized that all digital service providers in Indonesia must receive electronic registration in accordance with local laws.

Additionally, using another entity’s registration is considered a major breach of Indonesian digital operations law, the authority noted.

“Worldcoin services are recorded using TDPSE in the name of another legal entity, namely PT Sandina Abadi Nusantara,” Alexander Sabar, the Komdigi’s director general for digital supervision, said in the announcement, adding:

“Noncompliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation.”Community action required

According to Sabar, World’s temporary suspension in Indonesia is a measure taken to prevent potential risks to the community.

He mentioned that the digital ministry is committed to overseeing the digital ecosystem fairly and strictly to ensure the security of the national digital space.

Alexander Sabar is the head of Indonesia’s newly established Digital Space Monitoring Directorate General. Source: Komdigi

A proper supervision would require active participation from the community, Sabar added, stating:

“We invite the public to help maintain a safe and trusted digital space for all citizens. Komdigi also appeals to the public to remain vigilant against unauthorized digital services, and to immediately report suspected violations through the official public complaint channel.”

In the meantime, the community has apparently been divided over action by Komdigi.

“Good job Indonesia — at least somebody is standing up to that scam,” one commentator wrote on Reddit.

Related: From digital identity to outer space: Projects push crypto use cases

Others fired back, hinting at potential benefits stemming from World’s offering in Indonesia for the general public.

“If giving up your iris biometrics means you can feed your loved ones for a few weeks, that might be a trade worth making. In the end, it all depends on what matters most to you,” another Redditor said.

World’s latest news from Indonesia follows World’s debut in the United States in May 2025, with the platform rolling out its digital identity tech in six cities initially.

A number of global regulators were pushing back on World’s operations since its launch in July 2023, with governments like Germany, Kenya and Brazil expressing concerns over potential risks to the security of biometric data passed by users.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight