Global mandates are reshaping digital identity: What CXOs need to know

By Siddharth Gandhi, Chief Operating Officer – APAC, 1Kosmos

With governments around the world rewriting the rules of digital identity, it’s clear that this back-office IT function has become a board level compliance requirement. Look no further than India where the country’s financial regulator recently proposed one of the world’s strictest identity mandates.

The country’s new technology-based measures, designed to prevent unauthorized financial transactions, require brokers to bind trading accounts to users’ mobile SIMs and devices, along with biometric authentication. But India’s not alone. We’re seeing similar mandates popping up across financial hubs worldwide.

This isn’t a blip. It’s a lasting shift. Here’s what every security leader needs to know—and more importantly, what to do next.

The new global push for identity verification

Regulators in multiple regions are ramping up identity requirements, especially in sectors like finance, trading, and payments. Here are just a few recent examples:

India: SEBI’s proposal mandates binding SIM, device, and trading account together, plus biometric login. In parallel, the Reserve Bank of India (RBI) is urging banks to explore more secure authentication methods beyond SMS-based OTPs, citing the need to protect customers from fraud and credential compromise.

Philippines: The government is advancing its national digital identity program, PhilSys, with mandates for biometric enrollment and integration into financial and telecom services. Banks and fintechs are now being pushed to align with PhilSys as the basis for strong KYC and identity verification.

Singapore: SingPass digital identity required for many banking apps, including biometric authentication.

European Union: PSD2’s Strong Customer Authentication requires multifactor authentication, often using biometrics and device verification.

Nigeria: SIMs must be linked to national ID numbers for both telecom and financial services.

South Korea: SIM-based identity verification required for mobile banking and trading platforms.

UAE: National digital ID system mandates biometric-based authentication for financial services.

The technical details vary, but the pattern is consistent: Governments want proof of who is accessing accounts, verified by the device and enhanced with biometrics.

What these regulations have in common

Despite surface-level differences, most of these regulations share a common architecture that CISOs or CDOs need to understand.

First and foremost is the rise of device and SIM binding. Many of these mandates are aimed squarely at stopping SIM swap fraud and account takeovers by requiring every financial account to be linked directly to a verified mobile device and SIM card. By cryptographically binding the user’s mobile number, device, and account together, regulators are raising the bar for unauthorized access.

Next, biometric authentication is rapidly becoming the default—not just an optional layer. Fingerprint scanning, facial recognition, and live selfie checks are now mandated in several markets, not merely encouraged. While some regulators allow a PIN or password as a backup, biometrics are becoming the primary method of authentication.

Another recurring requirement is QR-based multi-device login. In cases where users need to access their accounts from desktops or laptops, regulators are promoting QR-code-based logins. These systems rely on the verified mobile device to authorize new sessions, usually through proximity- and time-sensitive QR codes, with strong controls for managing and revoking active sessions across devices.

Regulations also consistently require strong recovery mechanisms. Given that devices and SIMs are prone to loss or damage, regulators want firms to provide secure recovery options. This often includes re-verifying users’ identities through government-issued ID checks, video KYC processes, or telco-backed validation before allowing new device registrations.

In some markets, regulators also address family account management. They recognize that shared devices are common, particularly in household trading or investment scenarios. These frameworks allow for authorized linking of multiple accounts on one device but require formal consent and auditable processes to manage access safely.

Finally, almost every regulation emphasizes privacy and compliance by design. Encryption of sensitive identity data, user-controlled consent mechanisms, and compliance with recognized security standards such as FIDO2, ISO/IEC 30107-3, and others are now baked into many of these mandates. Regulators aren’t just focused on stopping fraud—they’re equally concerned with preserving privacy and data security in the process.

What CXOs should do now

This identity wave isn’t just about ticking compliance boxes. It also provides a regulatory-driven opportunity to upgrade your organization’s security posture, reduce fraud, and improve user experience all at once. Here’s where to focus:

Bind devices and SIMs early in the user journey. Capture device, SIM, and account links at onboarding. This creates a strong, cryptographic connection between users and their devices from day one.

Make biometric authentication the default login method. Use device-native biometrics like Face ID and fingerprint scanning for everyday logins. For high-risk transactions, incorporate advanced biometric checks with liveness detection—such as facial matching verified through live selfies—to ensure strong identity verification and protection against spoofing.

Enable QR-based multi-device login with tight session control. Deploy QR code-based logins for desktops and secondary devices—but make sure users can monitor, restrict, and revoke these sessions directly from their primary mobile device.

Invest in robust recovery mechanisms. Offer secure, streamlined recovery options for lost devices, such as re-binding via identity proofing (using government-issued IDs or telco verification) and multi-factor authentication, ensuring compliance with fallback requirements.

Support authorized family account linking. Provide flexible identity management and consent-based linking where one device/SIM is authorized for multiple related accounts, and permissions are managed through documented mandates.

Prioritize privacy by design in your identity architecture. Encrypt identity data both at rest and in transit, and adopt private, permissioned storage models—such as distributed ledgers—where only users can access their data via private keys. Ensure your approach aligns with standards like FIDO2, NIST 800-63-3, ISO/IEC 30107-1/3, SOC 2, and ISO 27001.

Faced with mounting global regulatory requirements, organizations should consider investing in modern, adaptable, standards-based identity systems today. Building flexibility into identity architectures now is a future proof way to prevent fraud and data breaches, while delivering seamless, secure user experiences.

About the author

Siddharth Gandhi is Co‑Founder and COO Asia Pacific at 1Kosmos where he leads strategic growth and operations across the region.  

Article Topics

1Kosmos  |  APAC  |  biometric authentication  |  biometric binding  |  digital ID  |  digital identity  |  identity verification  |  India  |  regulation  |  user experience