The privacy paradox of protecting kids online
CoinDesk 2026-07-15 14:58:50
Context: The US House has passed the Kids Internet and Digital Safety (KIDS) Act, a bill aimed at protecting minors online, but critics argue that it may lead to the creation of a large surveillance apparatus. The bill, which is currently in the Senate, requires platforms to verify the age of users to avoid liability for harm to minors. However, experts warn that this could result in the collection of sensitive user data, potentially leading to breaches and privacy concerns.
Key Facts
- In 2024, identity verification provider AU10TIX exposed drivers' licenses to hackers for over a year, and in 2025, the age-verification systems provider for Discord was breached, potentially exposing 70,000 users' government IDs.
- The KIDS Act, passed by the US House on June 29th with a vote of 267-117, aims to protect minors online but has sparked concerns about the potential for increased surveillance.
- The bill's mechanism makes platforms liable for harm to minors who access their services, giving companies a risk calculus to either verify age or accept legal exposure, effectively incentivizing age verification.
- The Cardano Foundation, a Swiss-based non-profit organization, has developed a digital identity system called Veridian, which allows users to prove their age without exposing other sensitive data, demonstrating a potential model for responsible verification.
- The author of the article, Frederik Gregaard, CEO of the Cardano Foundation, argues that lawmakers should prioritize data minimization, limit retention, and use privacy-preserving verification where necessary to protect minors without compromising user privacy.