EU's eIDAS 2.0 Will Make Passport-Scan KYC Legally Insufficient by 2027

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The European Union's eIDAS 2.0 regulation, which entered into force in 2024, requires all EU member states to provide citizens with a government-backed European Digital Identity Wallet by end of 2026. By December 2027, large regulated entities including banks, fintechs, insurers, and telecoms must accept the EUDI Wallet for authentication. The EU's Anti-Money Laundering Regulation, on a similar 2027 timeline, further restricts identity verification to eIDAS-notified digital ID schemes, the EUDI Wallet, or qualified trust services — excluding traditional passport-scanning methods. Unlike document-based KYC, the EUDI Wallet presents cryptographically signed credentials with selective attribute disclosure, requiring platforms to validate digital signatures and trust chains rather than inspect physical ID images. KYC providers must therefore rebuild core verification pipelines to support W3C Verifiable Credentials, cryptographic trust-chain validation, and credential revocation checks ahead of the regulatory deadline.

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