The embodiments herein disclose a method and system for providing access to an encrypted data file by separating the concerns of Authentication, Identity Resolution and Authorization from Encryption thereby allowing for multiple federated authentication providers and verified identities. The method comprises of creating an encrypted data file, embedding a file usage policy to the data file, sharing the encrypted data file with an identity of an intended content recipient and an allowed authentication provider specified in the file usage policy, activating a client application installed in a user device to open the encrypted data file, fetching and updating the data file usage policy from an application server, prompting the user to authenticate with the allowed authentication provider, authenticating the user with a specified authentication provider, verifying if the authenticated user is allowed to open the data file, opening the data file on successful verification and enforcing the file usage policy.