eIDAS 2: What Do You Need to Know?

Who hasn’t come to distrust electronic transactions?

Surely, many of us have feared the security of our electronic processes.

That’s why, since 2014, the eIDAS Regulation has been key in ensuring reliable electronic identification within the European Union, creating a unique and secure digital market.

Now, with the arrival of eIDAS 2.0, Europe is taking a step forward to adapt to current challenges, strengthening digital identification and trust services.

In this article, we explain what eIDAS 2.0 is, how it impacts KYB/KYC processes, and what it means for businesses and users.

What is eIDAS 2.0?

The eIDAS Regulation, in effect since 2014, laid the foundation for electronic identification and trust services within the European Union. This framework allowed the development of technologies like digital signatures and seals, fostering secure and reliable electronic transactions. However, with the rapid digital advancements, the original regulation no longer meets all current needs.

What does the new proposal offer?

eIDAS 2.0 introduces the European Digital Identity Wallet (EUDI Wallet), which will enable:

💡 Electronic identification and authentication with high-security standards.

💡 Sharing only the necessary data, while respecting GDPR and privacy.

💡 Access to public and private services across the EU in a unified way.

With this update, eIDAS 2.0 aims to provide a more secure, efficient, and inclusive system, adapted to future digital demands.

When will it come into effect?

Its implementation will begin in 2024, with full application expected by 2026, allowing member states to gradually adapt to the new requirements.

About the eIDAS 2.0 regulation

The original 2014 regulation is updated, focusing on digital identity through the EUDI Wallet, enhancing electronic authentication, digital signatures, and data protection. Its goal is to ensure interoperability and security in electronic transactions within the EU.

Impact on digital identification and KYB/KYC verification

The arrival of eIDAS 2.0 marks a turning point in digital identification within the European Union, directly impacting key processes such as KYB (Know Your Business) and KYC (Know Your Customer) verification. The introduction of the European Digital Identity Wallet will allow citizens and businesses to manage and share identity data more efficiently, securely, and with full user control.

For businesses, this evolution means a significant reduction in costs associated with client onboarding, identity verification, and regulatory compliance. Thanks to RegTech solutions enabled by eIDAS 2.0, procedures like KYC and Due Diligence will be faster and less expensive, allowing quicker access to goods and services. Additionally, by integrating high-security and cross-border trust standards, organizations will be able to operate more easily in different EU countries.

From the user’s perspective, the EUDI Wallet provides a more convenient experience by enabling quick and easy identity authentication or electronic signature. This enhances trust in digital services and mitigates risks such as identity theft and online fraud.

In the context of KYB verification, eIDAS 2.0 facilitates connections to reliable and up-to-date company data, reducing processing time and minimizing errors in processes like onboarding partners, suppliers, or employees.

What is its function and how is its implementation working?

The main function of this regulation is to establish an updated legal framework for electronic identification and trust services within the European Union. Its aim is to ensure more secure and efficient access to digital services (for individuals and businesses) through an interoperable and standardized system across the region.

Function of eIDAS 2.0

🪛 Uniform Regulation: Provides a common framework for electronic identification and authentication within the EU.
🪛 Support for Digital Transformation: Promotes the secure digitization of both public and private sectors.
🔹 Trust Facilitator: Ensures that digital transactions meet high standards of security and privacy.
🔹 Inclusion of all Member States: Promotes cross-border use of high-security electronic identity solutions.

🪛 Implementation of the regulation
It establishes clear guidelines for member states to implement the European Digital Identity Wallet, a key component of the regulation. Adoption includes:
🔹 Common Standards: Member states must develop interoperable solutions accepted across the EU.
🔹 Obligation to Issue: Each country must offer at least one digital wallet within 24 months of the regulation’s approval.
🔹 Linking with Key Services: The wallet will be integrated with essential public and private services, respecting user privacy and compliance with GDPR.

Implementation requires collaboration between governments, technology companies, and private entities, ensuring a smooth transition to a unified European digital system.

Benefits for businesses and users

🟢 Simplification and Efficiency
The European Digital Identity Wallet (EUDI) helps users manage their identity data while businesses reduce costs related to processes such as onboarding, KYC, and due diligence.

🟢 Increased Security
eIDAS 2.0 enhances identity authenticity with a qualified electronic signature, ensuring secure transactions and compliance with the GDPR.

🟢 Cross-Border Access
Electronic identification is valid throughout the EU, simplifying access to public and private services without the need for separate national solutions.

🟢 New Trust Services
It introduces services such as electronic document archiving and remote electronic signature management, expanding business possibilities.

Implementation Challenges

🔻 Technological Adaptation
Businesses will need to adjust their systems to integrate the new eIDAS 2.0 solutions, which may require technological investments.

🔻 Resistance to Change
Some businesses might face challenges in adopting new technologies, requiring internal training and awareness efforts.

🔻 Regulatory Compliance
Companies will need to comply with local and European regulations regarding data protection and electronic authentication.

🔻 Inclusion
Ensuring that all users, including those with disabilities, can access the Digital Wallet will be a key challenge.

How Silt and eIDAS 2.0 are driving the Digital Identity Transformation in Europe

The eIDAS 2.0 Regulation marks a milestone in the transformation of digital identity in Europe, offering individuals and businesses a safer, more efficient, and flexible way to manage their personal data and electronic transactions. 

The EUDI will allow users to access public and private services more easily, securely, and cross-border, reducing bureaucracy and promoting interoperability within the EU.

However, to fully unlock its potential, businesses must adapt to the new requirements. It is crucial to select technological solutions that meet eIDAS 2.0 standards, such as those offered by specialized RegTech companies.

At Silt, we help businesses integrate digital verification systems that facilitate the transition to this new regulation.

Are you ready to take the next step toward secure digital identity? 

Contact us and optimize your verification process with advanced KYB and KYC solutions ​🤓💠.