How the LEI and vLEI are powering Europe’s digital simplification agenda
The European Commission is making a major push to cut red tape and simplify regulation. Through its new simplification packages, the aim is to build a faster, more business-friendly Europe, reducing administrative burdens, improving cross-border processes, and moving toward a digital-first regulatory environment.
To create certainty around which company is which, there are two identifiers: the Legal Entity Identifier (LEI) and its digital counterpart, the verifiable LEI (vLEI) that regulators and policy should consider. According to the Global Legal Entity Identifier Foundation (GLEIF), these tools are well-positioned to help implement the EU’s “Once-Only Principle” and streamline regulatory compliance across sectors, especially when integrated into digital reporting and identity systems.
The LEI is already well established in financial markets, and the EU’s simplification drive is opening new doors. By embedding LEIs across regulatory systems, authorities can eliminate repetitive reporting and ensure consistency in how entities are identified. The vLEI extends this capability, providing tamper-proof, verifiable credentials that automate authentication and strengthen digital trust. There are immediate applications. From ESG data under the Corporate Sustainability Reporting Directive (CSRD) to cross-border KYC processes and trade verification, linking LEIs to reporting infrastructure improves reliability and reduces duplication. For XBRL, where data traceability is critical, this matters.
GLEIF’s message is clear: for a streamlined digital Europe to take shape, identity must be simple, standardised, and secure. The LEI and vLEI offer that foundation—now it’s up to regulators and industry to embed them more deeply into the system.
If you interested on the topic, read the full GLEIF blog.
