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We predict Smarter Proofs, Stronger Consent, and Real Adoption for 2026 

It’s 2026 already, and digital identity is starting to feel less like some distant tech promise and more like part of everyday life.

Here at SQR, we’re in the thick of it with our customers – maritime crews getting onboarded securely, finance folks onboarding their customers efficiently. Government issued “eIDs/mDLs” will continue to be on the rise for 2026 no doubt, but we thought we’d share what we’re seeing ahead in the identity world.

Looking back at 2025

Last year we figured reusable digital identities (reIDs) would smooth out online hassles, biometrics would need real consent to work, and regulations would finally pick up steam with things like the UK’s DIATF gamma phase, eIDAS 2.0, and mobile driving licenses. A fair bit landed. Reusable IDs are making verifications quicker, consent-first biometrics caught on in banking and access control, and laws like the Data (Use and Access) Bill, and Online Safety Act nudged the demand for verified digital IDs closer to the fore. It’s not perfect, but we’re moving.

Below we unpack our predictions for 2026:

Prediction 1: EU Digital Identity Wallets Roll Out Country-by-Country
The UK’s digital ID plans are still a bit of a puzzle – lots of ambition, but the timelines and narratives shift. It leaves space for teams like ours to (continue) to build what works right now. Europe’s EU digital identity wallets launch country by country, so one interoperable wallet works EU-wide for jobs, services, and borders. It’s a great idea. People will use it if it feels straightforward, safe, and helps them with their lives. Early adopters jump in, others wait until they see it won’t let them down. The EU got super specific on their requirements and have started to look further afield to collaborate too (hi Canada!)

Prediction 2: Smarter Identity Proofs Beyond Documents
For our customers, checking an ID document is just the start. They want it tied to a real person “plus”. For example our customers that are having to adhere to regulations around anti-money laundering, also need to know the risk around the political exposure (PEP) and sanction status of their customer, as well as nothing synthetic. With sanctions screening baked and checked daily against PEP sanctions lists, proactive compliance is a real possibility. Heading into 2026, digital identities let us prove who we are in smarter ways. Show your wallet says “crew-ready” for maritime, or “transaction-cleared” for finance, and always sharing the bare minimum. Quicker, safer onboarding ahead.

Prediction 3: Consent Becomes True Data Guardianship
Consent ruled 2025, and it still is. But now it’s guardianship – privacy protection for the people who hand over their data. You decide what reIDs or biometric data to share. When it feels right, people share without hesitation, but doing the right thing, ensuring that people are only sharing what they need to share – it’s hot for 2026 (well for us anyway) .

Prediction 4: Maritime Identity Verification Leads – Driven by Sanctions & Digital Records
Crew management and shipping need solid identity verification and identity proofing today, especially with UK/EU sanctions hitting Russian shadow fleets hard (over 500 vessels banned), and new rules targeting oil tankers by 2026. Add IMO pushes for electronic seafarer credentials (like Cyprus hosting a 2026 working group on mutual recognition) and Bahamas’ digital Seafarer Record Books rolling out now. Wallets can prove fitness-to-work, sanctions status, and quals instantly – link it to ID and see the magic unfold.

Quick Answers on 2026 Digital Identity

  • When do EU digital identity wallets launch? Country-by-country in 2026, building on eIDAS 2.0.
  • When is the Data Use and Access Act coming into force? You missed it – this was 2025 news.  
  • How does digital identity handle PEPs/sanctions? Linking ID with daily checks against global lists to create a “golden record”. 
  • What’s key for privacy? Consent + guardianship in reusable, interoperable systems.

We’re making this real at SQR – biometrics you control, reIDs that travel, compliance that doesn’t slow you down. 2026 could start to make trusted digital identity feel natural. Let’s see where it takes us.

Here at SQR, we’re in the thick of it with our customers – maritime crews getting onboarded securely, finance folks onboarding their customers efficiently. Government issued “eIDs/mDLs” will continue to be on the rise for 2026 no doubt, but we thought we’d share what we’re seeing ahead in the identity world.

Looking back at 2025

Last year we figured reusable digital identities (reIDs) would smooth out online hassles, biometrics would need real consent to work, and regulations would finally pick up steam with things like the UK’s DIATF gamma phase, eIDAS 2.0, and mobile driving licenses. A fair bit landed. Reusable IDs are making verifications quicker, consent-first biometrics caught on in banking and access control, and laws like the Data (Use and Access) Bill, and Online Safety Act nudged the demand for verified digital IDs closer to the fore. It’s not perfect, but we’re moving.

Below we unpack our predictions for 2026:

Prediction 1: EU Digital Identity Wallets Roll Out Country-by-Country
The UK’s digital ID plans are still a bit of a puzzle – lots of ambition, but the timelines and narratives shift. It leaves space for teams like ours to (continue) to build what works right now. Europe’s EU digital identity wallets launch country by country, so one interoperable wallet works EU-wide for jobs, services, and borders. It’s a great idea. People will use it if it feels straightforward, safe, and helps them with their lives. Early adopters jump in, others wait until they see it won’t let them down. The EU got super specific on their requirements and have started to look further afield to collaborate too (hi Canada!)

Prediction 2: Smarter Identity Proofs Beyond Documents
For our customers, checking an ID document is just the start. They want it tied to a real person “plus”. For example our customers that are having to adhere to regulations around anti-money laundering, also need to know the risk around the political exposure (PEP) and sanction status of their customer, as well as nothing synthetic. With sanctions screening baked and checked daily against PEP sanctions lists, proactive compliance is a real possibility. Heading into 2026, digital identities let us prove who we are in smarter ways. Show your wallet says “crew-ready” for maritime, or “transaction-cleared” for finance, and always sharing the bare minimum. Quicker, safer onboarding ahead.

Prediction 3: Consent Becomes True Data Guardianship
Consent ruled 2025, and it still is. But now it’s guardianship – privacy protection for the people who hand over their data. You decide what reIDs or biometric data to share. When it feels right, people share without hesitation, but doing the right thing, ensuring that people are only sharing what they need to share – it’s hot for 2026 (well for us anyway) .

Prediction 4: Maritime Identity Verification Leads – Driven by Sanctions & Digital Records
Crew management and shipping need solid identity verification and identity proofing today, especially with UK/EU sanctions hitting Russian shadow fleets hard (over 500 vessels banned), and new rules targeting oil tankers by 2026. Add IMO pushes for electronic seafarer credentials (like Cyprus hosting a 2026 working group on mutual recognition) and Bahamas’ digital Seafarer Record Books rolling out now. Wallets can prove fitness-to-work, sanctions status, and quals instantly – link it to ID and see the magic unfold.

Quick Answers on 2026 Digital Identity

  • When do EU digital identity wallets launch? Country-by-country in 2026, building on eIDAS 2.0.
  • When is the Data Use and Access Act coming into force? You missed it – this was 2025 news.  
  • How does digital identity handle PEPs/sanctions? Linking ID with daily checks against global lists to create a “golden record”. 
  • What’s key for privacy? Consent + guardianship in reusable, interoperable systems.

We’re making this real at SQR – biometrics you control, reIDs that travel, compliance that doesn’t slow you down. 2026 could start to make trusted digital identity feel natural. Let’s see where it takes us.

In this case study, we explore how digital identity verification can successfully address key challenges, demonstrating its impact in transforming public sector processes.

Solving Public Sector Pain Points: 

The need for independent validation of corporate ownership data has never been more pressing. As countries around the world intensify efforts to combat money laundering, tax evasion and financial crimes, understanding Ultimate Beneficial Ownership (UBO) has become a key global priority. Findings by the International Financial Accountability, Transparency and Integrity (FACTI Panel) estimates;

  • $500 billion losses to governments each year from profit-shifting enterprises;
  • $7 trillion in private wealth hidden in haven countries, with 10% of world GDP held offshore;
  • Money laundering of around $1.6 trillion per year, or 2.7% of global GDP.

One of the most effective tools in this battle is the beneficial ownership registry, but ensuring the accuracy and integrity of the information held within often presents a challenge. Certified digital identity solutions could provide the answer. 

What is a Beneficial Ownership Registry?

A beneficial ownership registry is a database that records the individuals who have significant control over, or who stand to benefit from, a legal entity such as a company or trust. The goal is to bring transparency to the ownership structure of companies, making it harder for criminals to hide behind complex corporate arrangements.

According to the Financial Action Task Force (FATF), the global authority on anti-money laundering and combating the financing of terrorism, a UBO is “the natural person(s) who ultimately owns or controls a customer or the natural person on whose behalf a transaction is being conducted.” This definition extends to those who exercise ultimate control over a legal entity, typically individuals who directly or indirectly own more than 25% of a company’s shares or voting rights.

The Challenges of UBO Disclosure

Identifying UBOs is not always straightforward. Ownership can be deliberately obscured through layered holding structures, spread across multiple jurisdictions with differing disclosure rules. This creates a significant challenge for authorities and regulators trying to track the real beneficiaries of a company. The International Monetary Fund (IMF) emphasised this critical risk in their 2022 whitepaper ‘A guide to Beneficial Ownership Transparency’, noting that countries should have mechanisms to ensure the accuracy of the data submitted.

FATF defines accuracy in the context of beneficial ownership information as having been “verified to confirm its accuracy by checking the identity and status of the beneficial owner using reliable, independently sourced or obtained documents, data, or information.” Given the complexities involved, independent validation of beneficial ownership data is critical. Without robust mechanisms, beneficial ownership registries run the risk of being inaccurate or incomplete, which leaves the system vulnerable to financial crime.

A Leading Example

One country that has made significant strides in beneficial ownership verification is Denmark. The Danish system integrates digital identity tools such as ‘MitID’ – a government-issued digital ID – with its beneficial ownership registry. MitID connects to an individual’s civil registration number, as well as their address in the Danish Address Register, enabling authorities to automatically cross-check all of the information submitted against trusted databases. This reduces the risk of both unintentional errors and fraud, ensuring a higher level of data accuracy.

However, while Denmark’s approach provides a model initiative in respect of the country’s resident beneficial owners, it does have limitations. Non-residents are ineligible for a MitID, necessitating an additional identity verification process for this group of beneficial owners. This adds complexity and relies on more traditional, less streamlined methods. 

Fostering an Inclusive Cross-Border Approach

Countries and jurisdictions without government-issued digital identity systems, or with foreign national UBOs, are increasingly turning to private sector digital identity solutions to validate their data. It is crucial however, that only digital identity providers certified to a recognised government standard – such as DIATF in the UK or eIDAS in the EU – are onboarded. This ensures that the verification process meets stringent regulatory and security benchmarks, providing a high level of trust and reliability. Find out how SQR’s certified digital identity solution is being leveraged in this way here.

This type of collaboration between public and private sectors fosters the creation of innovative, tailored solutions that meet the unique needs of each jurisdiction while also leveraging the advantages of reusability. For instance, individuals with a certified digital identity from an approved provider can seamlessly share their pre-verified identity information with the relevant authorities. This approach not only streamlines the verification process but also ensures adherence to stringent government standards, significantly mitigating the risk of fraud and enhancing the integrity of beneficial ownership data.

The Future of UBO Verification

Countries and jurisdictions without government-issued digital identity systems, or with foreign national UBOs, are increasingly turning to private sector digital identity solutions to validate their data. It is crucial however, that only digital identity providers certified to a recognised government standard – such as DIATF in the UK or eIDAS in the EU – are onboarded. This ensures that the verification process meets stringent regulatory and security benchmarks, providing a high level of trust and reliability. Find out how SQR’s certified digital identity solution is being leveraged in this way here.

The use of independent digital identity systems represents a crucial step forward in improving the accuracy and security of beneficial ownership databases. By fostering collaboration between governments and the private sector, countries can implement innovative, scalable solutions that address the growing demands of the global regulatory environment. Ultimately, these advances will empower authorities to better tackle financial crime, increase public trust, and enhance the integrity of beneficial ownership data worldwide.

A secure, efficient and inclusive digital identity system offers a wide range of benefits. By adopting certified digital identity solutions, governments and organisations can streamline operations, build public trust, and create a more secure and transparent digital ecosystem. 

The benefits of secure, efficient and inclusive digital identity

A certified digital identity solution provides a reliable and verifiable source of information, minimising errors often associated with manual verification processes. This is particularly crucial for company beneficial ownership data, where accuracy is paramount to ensure transparency and accountability. By verifying the legitimacy of ownership, digital identity systems ensure that only authorised individuals can access sensitive information or claim beneficial ownership. This significantly reduces fraudulent activity, protecting both individuals and organisations.

Governments around the world face stringent regulatory requirements for transparency, anti-money laundering (AML) and combating the financing of terrorism (CFT). Certified digital verification identity solutions also help meet regulatory obligations, by providing a secure and trusted method for verifying beneficial owners. Automating and standardising the identity verification process further ensures that organisations are compliant with complex regulations, whilst also reducing the risk of non-compliance penalties.

Managing large datasets manually is time-consuming and prone to errors. Thus, automating and streamlining data management and digital identity verification processes reduces administrative burdens and improves operational efficiency. This more accurate processing of ownership and identity data, in turn leads to better decision-making and resource allocation for governments and businesses. With a certified digital identity system, sensitive data related to ownership is better protected against breaches, thanks to robust encryption and authentication processes. These enhanced security measures ensure that sensitive information remains protected, and helps to maintain the integrity of ownership records.

In an increasingly interconnected world, the ability to verify identities across borders is essential for multinational organisations and cross-border transactions. Certified digital identity solutions have the ability to integrate with international databases, ensuring consistency and reliability in identity verification on a global scale. It further plays a key role in enhancing global interoperability, as they enable integration with international databases. This is crucial for verifying identities consistently across borders, supporting multinational entities and cross-border transactions.

Additionally, governments that utilise certified digital identity verification systems can strengthen public confidence by demonstrating their commitment to transparency and safeguarding ownership data integrity. Furthermore, collaboration between governments and certified identity verification service providers fosters innovation. By partnering with cybertech firms, governments leverage advanced technology to develop scalable, compliant, and secure solutions for managing beneficial ownership databases.

This synergy benefits both parties, allowing governments to implement modern solutions while enabling tech firms to design systems aligned with regulatory needs.

Rebecca Glassey, Product & Operations Manager at SQR:

“Certified digital identity solutions are the cornerstone of secure, accurate data management in the modern era. By collaborating closely with government entities, we ensure that our technology not only meets the highest regulatory standards but also delivers the scalability and security that public systems demand. It’s all about providing a seamless and trusted verification process, while reducing the risk of fraud and errors in critical government datasets like beneficial ownership registers.”

Steven Webster, Head of Strategic Partnerships at SQR:

“Our work with government agencies highlights the immense value of public-private collaboration in tackling complex challenges such as identity verification. By partnering with certified Identity Service Providers, governments can adopt cutting-edge technology that ensures transparency and security in managing beneficial ownership data. This level of cooperation fosters innovation and enables both parties to create solutions that are not only efficient but also adaptable to the evolving regulatory landscape.”

For more details on how SQR’s certified digital identity solution is being implemented in collaboration with governments, refer to this SQR article.

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