Cardano CEO Highlights Risks of Online Age Verification Systems

In recent years, age verification systems have faced significant privacy challenges, a concern emphasized by Frederik Gregaard, CEO of the Cardano Foundation. Over the past few years, incidents such as the 2024 breach at AU10TIX and the 2025 hack affecting Discord's age-verification systems have exposed personal identification data of users, illustrating how these systems can become vulnerabilities.

The U.S. House of Representatives passed the Kids Internet and Digital Safety (KIDS) Act on June 29, 2026, with the intention of protecting minors online. However, Gregaard points out that the act does not explicitly mandate age verification. Instead, it puts the onus on platforms to verify user age, creating a liability for companies that fail to do so. This model drives platforms to implement robust verification processes, effectively fostering a culture of data collection where the original intent may shift from merely confirming age to extensive identity verification.

Gregaard warns that as the bill is further developed in the Senate, where its authors are advocating for tougher measures, there is a risk that the tools intended to protect children could instead expand surveillance practices. He mentions that increasing the demands for data retention and identity verification can lead to a greater chance of financial and identity breaches.

While some states, like Utah, are exploring digital identity solutions that prioritize privacy, Gregaard argues that the broader legislative approach might create unnecessary surveillance infrastructure. By placing emphasis on data collection rather than data minimization, lawmakers risk fostering a digital ecosystem where user data is at greater risk of exposure without necessarily achieving safety for minors online.

"If safety can be improved without turning the internet into an identity checkpoint, that should be the only option," says Gregaard. This sentiment captures the need for legislation that balances safety with privacy, advocating for systems that allow age verification without excessive data disclosure.

Ultimately, the success of the KIDS Act and similar legislation will depend on how well they protect minors while limiting the data they require from users. The ongoing discussions and developments in the Senate will be pivotal in determining how identification and privacy intersect in the digital space going forward.