India has directed WhatsApp to halt the introduction of its new username feature and explain how it will prevent a surge in online fraud, marking the most significant regulatory challenge yet to the messaging platform's biggest privacy overhaul. The order, issued by the Ministry of Electronics and Information Technology, gives the Meta-owned company three days to respond and suspends the rollout in a country that accounts for more than 850 million of WhatsApp's 3.3 billion global users. The intervention, viewed from New Delhi, reflects mounting official anxiety that decoupling user identities from phone numbers will make it harder to trace cybercriminals.

The feature itself, announced last week, allows users to create a unique handle preceded by an "@" symbol, enabling them to initiate conversations without sharing their phone number. The number remains necessary for account registration and security, but it is no longer automatically disclosed to new contacts. WhatsApp has framed the change as a privacy safeguard, arguing that phone numbers are tied to too many parts of a person's life and that usernames will protect users in group chats, online marketplaces and other settings where they interact with strangers. The design borrows from rivals Telegram and Signal, which have long offered similar functionality, and includes a Username Key option that can require a code for first contact.

Indian authorities contend the shift could materially increase phishing, impersonation attacks and so-called digital arrest scams, in which fraudsters pose as law enforcement officials. The government cited the country's Information Technology laws, warning that platforms risk losing legal liability protections if they fail to meet due diligence requirements. The move extends a pattern of assertive tech regulation by New Delhi, which has previously clashed with X over content moderation and recently pressed Telegram on compliance. Digital rights groups, however, have questioned the legal basis for pre-emptively blocking a product feature, with the Internet Freedom Foundation describing the order as an attempt to dictate what companies may develop.

WhatsApp has stressed that the feature is not yet live and will be introduced gradually later this year. A spokesperson said the company has built in multiple safeguards: users must know an exact username to make contact, limits are placed on how many new people an account can reach, and systems detect repeated guessing attempts and common abuse patterns. High-profile names have been reserved to prevent impersonation. The company also noted that users who hide their online status will not be visible via a separate green dot indicator currently being tested in beta versions on Android and iOS, a feature that shows when a contact is active on the info page.

The next factual milestone is the conclusion of consultations between WhatsApp and Indian authorities, with the government's assessment expected to determine whether the feature can proceed in the country. The outcome will shape the global timeline, as India's user base makes it impossible for the platform to ignore. Meanwhile, the green dot indicator remains limited to a subset of beta testers, with no public launch date announced.