The UK government abandons the plan to mandate digital ID for workers after facing criticism from politicians, civil liberties groups, and campaigners. Nearly 3 million people signed a petition against digital ID, prompting the shift to make it optional when introduced in 2029. This move reflects public concerns about centralized identifiers.

On the other hand, the EU is progressing with its digital identity framework and digital euro plans, exploring privacy-preserving methods like zero-knowledge proofs. Privacy-focused crypto tools, including privacy coins and decentralized identity protocols, are gaining traction as regulators consider embedding identity checks into DeFi and self-hosted wallets. Policymakers are testing ways to strengthen AML and KYC controls in onchain infrastructure.

Read more at Cointelegraph: UK Scraps Mandatory Digital ID Plans as Crypto Privacy Tech Gains Ground