New Challenges and Possible Policy Options for the Regulation of Electronic Identity

This paper discusses the challenges and possible policy options for the regulation of electronic identity (eIdentity). Policy-oriented literature has often focused on technological solutions, and while this interest is warranted, much less has been said on the regulatory challenges and possible solutions arising directly from developments in eIdentity. In this context, we distinguish five main challenges for policymakers: eIdentity as a new legal category, issues related to identity rights, changing role of governments, developments in the eIdentity industry, and proliferation of identity management systems. We analyse these five challenges as they apply to two use cases, Augmented ID and Pinch Analytics, which highlight some practical problems for consumers that have emerged as a result of new concepts of eIdentity. We conclude by discussing possible policy options such as driving the development of a single regulatory market, supporting the development of common standards, enhancing cross-border legislation, defining a clear incentive framework for companies, and uniformly implementing existing legislation.