Breaking News, Explained: Global Digital ID Regulations and Shifts (2026)

Digital identity is becoming a cornerstone of modern financial and public services, with governments worldwide racing to implement secure, interoperable systems. In 2025, major economies introduced or updated regulations to strengthen verification, protect users, and combat fraud. Let’s dive into the peculiarities of global digital ID regulations and why digital ID is important to maintain inclusivity and user trust in 2026 and beyond.

Digital ID goes global: Key regulatory developments in 2025 

To strengthen security, improve access to services, and reduce fraud, more and more governments around the world have introduced or are developing regulations for digital identity systems that underpin access to public and financial services. 

Pursuant to the revised eIDAS 2.0 framework governing digital identities and trust services within the European Union, the EU’s system authorizes residents of Member States to securely store and transmit verified identity credentials in accordance with applicable regulatory requirements. In 2025 alone, several major economies advanced their digital ID systems, demonstrating varying approaches in regulatory implementation.

In July 2025, the EU adopted new rounds of regulations on trust services and electronic attestations in preparation for the EU Digital Identity (EUDI) Wallet, marking a significant step toward a bloc-wide digital ID. EU member states like Malta are now developing national wallet apps under a shared framework, with a rollout deadline of December 2026. 

Suggested read: Breaking News, Explained: eIDAS Summit Explores European Digital Identity

Within the EU, Estonia continues to operate its existing e-ID card and Mobile-ID systems while working on joining the EUDI Wallet. Denmark, meanwhile, replaced NemID with the new digital MitID for identification and authentication for a range of services, including money transfers. The country also contracted a firm to develop an eIDAS-compatible wallet, aiming for full interoperability with its EU partners.

Outside the bloc, in September 2025, the United Kingdom confirmed a new digital ID scheme, set for nationwide rollout by July 2029. Digital IDs have long been controversial in the UK, but are being seen as increasingly necessary to simplify access to public services while combating illegal working in the country.

Across the Atlantic, the United States has made a series of significant advances, including the National Institute of Standards and Technology (NIST) updating its Digital Identity Guidelines in August 2025 to tackle emerging threats like deepfakes. The Transportation Security Administration (TSA) also continued expanding acceptance of mobile IDs at airport checkpoints, recently approving Montana-issued IDs in Apple Wallet for airport screening. Yet, all passengers, including those traveling through Helena Regional Airport with a digital ID, should continue to carry and have readily available their physical driver’s license or identification card.

Meanwhile, in July 2025, China launched its National Online Identity Authentication Public Service, offering citizens a unique, government-verified online identity token usable across web services. Participation with the service is voluntary, but it is deeply integrated with existing government databases, reinforcing the country’s state-led model of digital identity management.

In Australia, the Digital ID Act came into effect in 2024, and in 2025, the government is consulting on rule updates to strengthen Digital ID accreditation, data standards, and incident-reporting obligations under the national digital identity system.

India, home to the world’s largest biometric ID program, Aadhaar, has seen new draft rules introducing more stringent requirements surrounding consent and data use limitations. 

In Kenya, the government has scrapped fees for ID/passport applications, launched mobile ID registration drives, and is working on a progressive model for fully digital national identification, including biometrics.

These developments reflect a global pattern of digital ID becoming increasingly essential to combat emerging threats and promote user convenience.

New wave of digital ID rules: What’s changing and why it matters

The 2025 wave of digital ID regulations reflects how jurisdictions are turning to identity systems not only to address evolving security and fraud threats but also to improve access to services and strengthen digital infrastructure.

Suggested read: Fraud, Digital Identity, Trust. Where do we go from here?

The implementation of the requirements of the EUDI Wallet and eIDAS 2.0 demonstrates a series of interoperable privacy-centric solutions built around user consent and open standards. 

A number of jurisdictions have long been suspicious of digital ID, and the concept of increased government access to sensitive details can lead to significant debate. However, as citizens share many of these details with governments already, consumer perceptions may be changing as people see the benefits of digital IDs. Instead of having accounts for each individual government service, one centralized digital ID allows for reduced friction. 

Meanwhile, China’s approach exemplifies a state-backed digital ID system built on decentralized identifier (DID) technology, combining blockchain elements with strong government oversight.

Overall, digital ID systems strengthen trust, security, and efficiency in how people access both public and private services. As fraud threats evolve, regulations ensure these systems are interoperable, privacy-respecting, and secure across borders. In 2025 and beyond, digital ID rules will shape both compliance standards and how global businesses and citizens interact in the digital economy.

Digital ID: Implications for the market, the industry, and the trends

This global patchwork of regulations is shaping a new landscape for identity verification. As digital ID increases, providers need to be able to deliver compliant verification solutions that account for the divergence between jurisdictions. 

Providers also need to stay up-to-date with any regulatory developments to ensure they comply. Vendors are looking to integrate with emerging national wallets, systems, and frameworks, while fintechs and financial institutions are considering how to accommodate them.

For banks, payment providers, and those in related industries, this wave of new regulations means embedding new systems into KYC and AML processes. Verified digital credentials can reduce friction, lower fraud rates, and accelerate customer onboarding. 

There are also opportunities for technology firms and telecoms in acting as credential issuers, wallet developers, or trust service providers. 

Speaking more generally, digital identity is increasingly essential for participation in everything from government and financial services to the broader digital landscape. It could also become key for participation in age-restricted services, such as social media, as planned by Australian lawmakers. 

Ultimately, effective regulation will determine whether digital ID becomes a global layer to protect against fraud or a patchwork of incompatible systems.

Building blocks of trusted Digital IDs

Effective digital ID systems ultimately achieve their primary purpose: accurately verify that someone is who they say they are. Regulations thus need to support digital ID systems in this mission by allowing for a framework that balances security, privacy, usability, and interoperability while effectively combating fraud. 

The best examples often share these traits:

• Risk-based focus for fraud prevention
• User empowerment
• Consideration for cross-jurisdictional interoperability

How Sumsub can help: Fast and secure reusable verification 

Sumsub ID aligns with national and international digital ID systems to ensure seamless onboarding and full regulatory compliance.

Instead of requiring users and businesses to verify their identity repeatedly on every platform, Sumsub ID enables one-time verification and secure reuse across regulated services worldwide. By supporting local compliance standards and integrating with eIDAS-style wallets, national digital IDs, and AML/KYC frameworks, it ensures readiness for rapidly evolving regulations on a global scale.

For companies operating across multiple jurisdictions, Sumsub ID acts as a unified verification layer. Together with Reusable KYC, it delivers the smoothest onboarding experience—reducing friction, cutting costs, and driving higher conversion rates. This makes it ideal for customers who need to onboard across multiple platforms within the Sumsub ecosystem.

Additionally, Sumsub offers Qualified Electronic Signature (QES) checks, ensuring businesses can onboard EU users in line with eIDAS assurance levels and GDPR requirements.

For first-time customers, Sumsub provides Non-Doc Verification based on national digital identity systems, as well as QES Verification. Both solutions are designed to meet regulatory standards across regions while offering the most efficient onboarding experience possible.