The UK is one of the only developed economies not using a form of national ID card, research has shown.
Research for Sky News’ Sunday Morning with Trevor Phillips found that of the 38 OECD (Organisation for Economic Cooperation and Development) countries, just six – all predominantly English-speaking – do not have an ID scheme: Australia, Canada, Ireland, New Zealand, the United States and the UK.
Debate over digital ID cards reignited this week, following the latest intervention by former prime minister Sir Tony Blair.
Writing in the Daily Mail, Sir Tony argued: “Lower taxes, reduced spending and improved outcomes have often seemed like the Holy Grail of governing: desirable but impossible. Modern technology puts it within reach.
“Our present system isn’t working,” he added. “This is a time for shaking up. For once-in-a-generation disruption. Digital ID is a good place to start.”
Compulsory physical ID was one of the flagship projects in Mr Blair’s premiership, but plans were shelved by the coalition government before they could be introduced.
Mr Blair’s Institute for Global Change estimates the scheme would cost £1bn to launch and £100m a year to maintain, but could save the Treasury £2bn a year.
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Separate analysis in 2019 by consultants McKinsey found ID cards could boost Britain’s GDP by 3% by streamlining bureaucracy and access to public services.
But opponents argue they pose risks to civil liberties and could lay the foundations for a surveillance state.
The implementation of ID cards varies widely around the world.
Cards remain only optional in most OECD countries, whereas Chile, Luxembourg and Turkey legally require citizens to carry ID at all times.
There seems to have been a move towards ID cards in recent years, with Norway, Hungary, Denmark, Japan and Lithuania all introducing them in the last 10 years.
The UK government has given mixed signals over whether digital ID is on the agenda.
Speaking to Sky’s Trevor Phillips days after the election, Business Secretary Jonathan Reynolds said Home Secretary Yvette Cooper “would be looking at all the sources of advice” on the issue – only to reverse that in another interview hours later.
The government has since tabled legislation to help create “digital identities”, allowing people to opt in or out of having certain information, like their address or biometrics, on their digital record.
Ministers have made pains to stress these would be neither mandatory nor digital ID cards.
Australia started rolling out a similar scheme earlier this month, despite concerns over privacy and safeguarding.
On today’s Sunday Morning with Trevor Phillips, Trevor will be joined by Border Security Minister Angela Eagle, shadow home secretary Chris Philp, and journalist and historian Anne Applebaum.
Watch it live on Sky News from 8.30am, and follow along live on the Politics Hub.
The elections watchdog has criticised the government for offering to consider delaying 63 local council elections next year – as five authorities confirmed to Sky News that they would ask for a postponement.
On Thursday, hours before parliament began its Christmas recess, the government revealed that councils were being sent a letter asking if they thought elections should be delayed in their areas due to challenges around delivering local government reorganisation plans.
The chief executive of the Electoral Commission, Vijay Rangarajan, hit out at the announcement on Friday, saying he was “concerned” that some elections could be postponed, with some having already been deferred from 2025.
“We are disappointed by both the timing and substance of the statement. Scheduled elections should, as a rule, go ahead as planned, and only be postponed in exceptional circumstances,” he said in a statement.
“Decisions on any postponements will not be taken until mid-January, less than three months before the scheduled May 2026 elections are due to begin.
“This uncertainty is unprecedented and will not help campaigners and administrators who need time to prepare for their important roles.”
Mr Rangarajan added: “We very much recognise the pressures on local government, but these late changes do not help administrators. Parties and candidates have already been preparing for some time, and will be understandably concerned.”
He said “capacity constraints” were not a “legitimate reason for delaying long planned elections”, which risked “affecting the legitimacy of local decision-making and damaging public confidence”.
The watchdog chief also said there was “a clear conflict of interest in asking existing councils to decide how long it will be before they are answerable to voters”.
Four mayoral elections due to take place in May 2026 set to be postponed
Sky News contacted the 63 councils that have been sent the letter about potentially delaying their elections.
At the time of publication, 17 authorities had replied with their decisions, while 33 said they would make up their minds before the government’s deadline of 15 January.
Many councils told Sky News they were surprised at yesterday’s announcement, saying that they had been fully intending to hold their polls as scheduled.
They said they were now working to understand the appropriate democratic mechanism for deciding whether to request a postponement of elections. Some local authorities believe it should be a decision made by their full council, while others will leave it up to council leaders or cabinet members to decide.
Multiple councils also emphasised in statements to Sky News that the ultimate decision to delay elections lay with the government.
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Reform UK has threatened legal action against ministers, accusing Labour and the Tories of “colluding” to postpone elections in order to lock other parties out of power – a sentiment echoed by Liberal Democrat leader Sir Ed Davey.
But shadow local government secretary Sir James Cleverly told Sky News this morning that the Conservative Party “wants these elections to go ahead”. Sky News understands that the national party is making that position clear to local leaders.
A spokesperson for the Ministry of Housing, Communities, and Local Government, said it was taking a “locally-led approach”, and emphasised that “councils are in the best position to judge the impact of postponements on their area”.
They added: “These are exceptional circumstances where councils have told us they’re struggling to prepare for resource-intensive elections to councils that will shortly be abolished, while also reorganising into more efficient authorities that can better serve local residents.
“There is a clear precedent for postponing local elections where local government reorganisation is in progress, as happened in 2019 and 2022.”
The five councils that confirmed they would be seeking postponements were:
Blackburn with Darwen Council (Labour);
Chorley Borough Council (Labour);
East Sussex County Council (Conservative minority);
Hastings Borough Council (Green minority);
West Sussex County Council (Conservative).
The councils in Chorley, and East and West Sussex, had decided prior to Thursday’s government announcement that they would request a delay.
Can the Conservatives make ground at the local elections in 2026?
An East Sussex County Council spokesperson told Sky News: “It is welcome that the government is listening to local leaders and has heard the case for focussing our resources on delivery in East Sussex, particularly with devolution and reorganisation of local government, as well as delivering services to residents, such high priorities.”
They also pointed to the cost of electing councillors for a term of just one year, and argued that it would be “more prudent for just one set of elections to be held in 2027”.
West Sussex County Council echoed those reasons and said it would cost taxpayers across the county £9m to hold elections in 2026, 2027, and 2028, as currently planned.
Chorley and Blackburn councils also cited the cost of delivering elections, and said they would prefer that money be spent on delivering the local government reorganisation and delivering services to local residents.
Meanwhile, 12 councils confirmed to Sky News that they would not be requesting delays:
Basingstoke and Deane Borough Council (Liberal Democrat-Independents);
Broxbourne Borough Council (Conservative);
Colchester City Council (Labour-Liberal Democrat);
Eastleigh Borough Council (Liberal Democrat);
Essex County Council (Conservative);
Hart District Council (Liberal Democrat-Community Campaign);
Hastings Borough Council (Green minority);
Isle of Wight Council (no overall control);
Newcastle-under-Lyme Borough Council (Conservative);
Portsmouth City Council (Liberal Democrat minority);
Keonne Rodriguez, who pleaded guilty to one felony count related to his role at Samourai Wallet, is calling on US President Donald Trump to pardon him, citing similar language that has been successful in previous pardon applications.
In a Thursday X post, Rodriguez said he would report to prison on Friday, where he will serve a five-year sentence for operating an illegal money transmitter. The Samourai co-founder claimed there were no “victims” to his crime, and blamed his incarceration on “lawfare perpetrated by a weaponized Biden DOJ.”
In a message tagging Trump, Rodriguez expressed hope that the US president would issue a federal pardon for him and William “Bill” Lonergan Hill, another Samourai executive who pleaded guilty and was sentenced to four years. Rodriguez blamed “activist judges” for his legal troubles, claiming he was targeted by a “political anti-innovation agenda.”
“I maintain hope that [Trump] is a fair man, a man of the people, who will see this prosecution for what it was: an anti innovation, anti american, attack on the rights and liberties of free people,” said Rodriguez. “I believe his team […] and others truly want to end the weaponization of the DOJ that the previous administration wielded so effectively […] I believe he will continue to wield that power for good and pardon me and Bill.”
Rodriguez’s public plea followed Trump’s statement that he would “take a look” at a pardon for the Samourai co-founder, claiming that he had no knowledge of the case. It’s unclear whether Rodriguez filed an official application for a pardon or is relying on public statements to get the president’s attention.
Other crypto execs successfully lobbied for a Trump pardon
One of Trump’s first acts as president in January was to issue a pardon for Silk Road founder Ross Ulbricht, who had been serving a life sentence for his role in creating and operating the darknet marketplace.
Former Binance CEO Changpeng “CZ” Zhao, who pleaded guilty to one felony in 2023 related to the exchange’s Anti-Money Laundering program, served four months in prison but also received a pardon from the president. Trump later said he “[knew] nothing about” Zhao when asked about the pardon in a November interview.
Rodriguez’s language addressing Trump mirrored comments from the White House on previous pardons. For example, Press Secretary Karoline Leavitt said it was a “weaponization of justice from the previous administration” when the president commuted the sentence of David Gentile, who was convicted of defrauding “thousands of individual investors in a $1.6 billion” scheme in 2024.
Crypto users on Polymarket were not given the choice of betting on the odds of a Trump pardon of Rodriguez as of Friday. At the time of publication, Trump ally Steve Bannon had the highest odds, at 9%.
The United Kingdom is taking a decisive step toward fully regulating its crypto market. This week, the Financial Conduct Authority (FCA) launched a wide-ranging consultation outlining proposed rules for crypto exchanges, staking services, lending platforms and decentralized finance.
The proposals follow new secondary legislation from the UK Treasury that formally brings crypto activities into the country’s financial services framework, with a target implementation date of Oct. 25, 2027.
In this week’s episode of Byte-Sized Insight, Cointelegraph explored what this consultation signals for the UK crypto market and how industry leaders are interpreting the regulator’s direction. We spoke with Perry Scott, head of UK policy at Kraken and chair of the UK Cryptoasset Business Council, to break down what’s new and what’s at stake.
From fragmented oversight to full market structure
Until now, the UK’s approach to crypto regulation has been piecemeal. Companies have operated under anti-money laundering rules and strict financial promotion requirements, but there has been no unified framework governing how crypto markets should function.
Scott described the moment as long anticipated.
“Christmas has come early for policy nerds like me,” he said, pointing to the scale of the proposals, which span “around 700 pages to sink our teeth into.”
More importantly, the consultation comes with a firm timeline. “Mark your calendars because the firing gun has been fired,” Scott said, referring to the 2027 go-live date, which gives a signal that the industry is moving from waiting to preparing.
At the core of the consultation is market structure, particularly how exchanges are regulated and how they access liquidity. Scott welcomed the FCA’s recognition that crypto markets are inherently global, saying that “accessing global liquidity will support better execution outcomes for consumers.”
The UK is also carving out a distinct approach to staking. Earlier this year, it became one of the first major jurisdictions to separate staking from traditional financial services rules. Under the consultation, staking would be governed by bespoke requirements, a move Scott called “world leading.”
The consultation is open until Feb. 12, and companies are already adjusting.
“UK firms aren’t going to sit around and wait,” Scott said.
He said regulatory certainty could create “hundreds, if not thousands of jobs” across compliance, legal and technical roles.
As the UK positions itself between the EU’s Markets in Crypto-Assets Regulation (MiCA) regime and renewed regulatory momentum in the US, the outcome of this process could determine whether it emerges as a competitive crypto hub or struggles to keep pace.
To hear the complete conversation on Byte-Sized Insight, listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And remember to check out Cointelegraph’s full lineup of other shows!