Australia deployed its version at the end of last year, and the United Kingdom only followed last week. The idea is simple on the surface: offer citizens a unique digital identity to access public services, financial accounts and even health care.
However, the decision raises more important questions. Could these systems give governments new ways to limit the way people spend their money? And more importantly for investors, could they open the door to restrictions on the crypto?
Digital IDS and financial control
Supporters argue that digital identifiers make life easier. Recording to banks, tax filing or verification of medical records could all be carried out with a secure profile. But criticism warns against the reverse. If the same ID is linked to payments, regulators can obtain new tools to follow and even restrict transactions.
Say no to a British digital id! pic.twitter.com/c63mhisluo
– Nigel Farage MP (@nigel_farage) September 25, 2025
There is a previous one. In China, the digital yuan has integrated features allowing authorities to monitor expenses in real time. While Western countries highlight confidentiality, technology could technically be used to establish rules on what people can buy. For example, a government could limit purchases of certain goods or flag transfers to the exchanges of cryptography.
“It is right away from the 2030 UN agenda.”
Dr. Renée Hoenderkamp: Brit Card, the new compulsory digital identifier of the United Kingdom, concerns “surveillance and control”.
“The next step from here is digital money … all linked to your digital identifier.”
“Get out of the line, say something they don’t like, … pic.twitter.com/jkgys7ljbp
– Wide Awake Media (@wideawake_media) September 28, 2025
Cryptographic investors know that this is not a wacky concern. In 2022, Canada froze bank accounts linked to demonstrators, arousing an interest in Bitcoin as a financial rescue buoy. The Canadian affair shows how digital rails, when linked to identity, can give governments a rapid lever on individual freedom.
The trend towards tighter regulations
The rise of digital IDs also rides a global trend: the stricter rules on crypto. According to the Financial Action Task Force, more than 75% of countries are now applying known checks to trade. The regulation of the mica of Europe, which comes into force in 2024, establishes new standards of compliance. With the digital IDs in place, the application of these rules becomes much easier.
🚨 Breaking: “You will not be able to work in the United Kingdom if you do not have digital identification”
While any digital and chain move, KYC is inevitable and identity rails must exist. This is obvious.
But here is the danger: the United Kingdom wants it to be centralized. They hold the keys. They… pic.twitter.com/21jv3tnwqn
– Pumpius (@pumpius) September 26, 2025
This does not mean that prohibitions are inevitable. Switzerland itself houses “Crypto Valley”, one of the most active centers of blockchain innovation. The United Kingdom also said it was aimed at becoming a center of digital origin. However, digital IDs could include the balance of power to regulators, which gives them sharper tools to slow down the activity they consider to be risky.
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The information discussed by Altcoin Buzz is not financial advice. This is only for educational, entertainment and information purposes. All the information or strategies presented are the thoughts and opinions of the writer / examiners, and their risk tolerance can differ from yours. We are not responsible for the losses you may suffer because of any investment directly or indirectly linked to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; Therefore, please make your reasonable diligence. Copyright Altcoin Buzz Pte Ltd.
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