Phishing for material for sextortion has never been more trivial. The implementation of this is going to lead to mass fraud. Walk into parliament, ask who is willing to go to jail in defense of the act if and when the first lot of randy pensioners are bankrupted, or kid commits suicide out of shame - and if no one raises their hand, repeal it.
This is absolutely going to lead to the black mail of people in both the private and public sector. Ruling parties are going to have access to this information and will use it to force votes. Intelligence agencies will do the same. On top of that its only a matter of time before you get a Tea app style leak where this data was simply not secured. Forcing people to identify themselves before engaging in their sexual p…
They are normalising people being asked by potentially shady sites to subject to identification procedures, after all.
If I was inclined to sell such information illegally, I'd set up a bunch of honeypots and "verify" users and just hoard the data to sell.