11:22 AM EDT, 07/02/2026 (MT Newswires) -- (Updates with a response from a WhatsApp spokesperson in the fourth and fifth paragraphs.)

Meta Platforms' ( META ) WhatsApp has been directed by the Indian government to halt the rollout of its planned username feature and justify its implementation, Reuters reported Thursday, citing a government letter it reviewed.

A July 1 government letter gave WhatsApp three days to respond and ordered it to freeze the rollout pending consultations, citing concerns that the feature could facilitate fraud, phishing and impersonation by concealing users' phone numbers, according to the report.

A WhatsApp spokesperson told Reuters the feature is not yet live, will be rolled out gradually later this year, and includes safeguards against scams, the report added.

In a statement emailed to MT Newswires, a WhatsApp spokesperson said the company has announced an option for users to reserve their preferred usernames when the feature is live later this year. When available, users who receive a first-time message via a username will be shown information such as whether the sender is a new account, an existing contact, shares mutual groups or is based in a different country to help them decide whether to respond.

The spokesperson added that WhatsApp has reserved high-profile usernames, including those of public figures, government entities, celebrities and verified Meta accounts, to prevent impersonation.

Users will still need a phone number to register for WhatsApp, and the company said it has built multiple anti-scam safeguards into the feature, including requiring senders to know the exact username, limiting how many new people an account can contact, blocking repeated attempts to guess a user's username and using systems to detect and remove impersonation and abusive activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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