The European Union has prepared updated AML legislation.
According to it, crypto services in the EU will be required to renounce anonymity.
In particular, this applies to transactions through mixers, amounting to more than 1000 euros and with privacy mechanisms.
The European Union has strengthened legislation against money laundering (AML). According to the new rules, starting from 2027, the circulation of so-called 'anonymous coins', such as Monero (XMR) and Zcash (ZEC), on platforms that fall under cryptocurrency asset regulations (MiCA) will be prohibited.
Key provisions of the changes include:
a ban on anonymous cryptocurrencies: crypto service providers (exchanges, wallets, and DeFi protocols) are required not to process transactions with coins that use privacy mechanisms (such as zk-SNARKs or ring signatures) and prevent user identification;
a ban on anonymization services: any technical solutions or services that allow hiding information about transactions or participants will also be prohibited. This specifically concerns mixers and obfuscation protocols;
an updated 'know your customer' procedure for transactions over 1000 euros: the new rules require platforms to conduct mandatory identity verification for all cryptocurrency transfers exceeding 1000 euros, regardless of who is conducting the transaction.
"These measures aim to prevent the use of cryptocurrencies for financing criminal activities, including terrorism, human trafficking, and tax evasion," the document's explanation states.
The organization for combating money laundering (AMLA), established in 2024, will be responsible for the implementation and detailing of the rules.
By July 10, 2026, AMLA will publish:
- technical standards for high-risk sectors;
- transaction threshold values requiring enhanced scrutiny;
- criteria for identifying one-time and related transactions.
By July 10, 2027, AMLA will also issue guidelines regarding:
- reliability assessments of counterparties;
- minimum actions regarding unregistered or illegal crypto platforms;
- requirements for risk management for crypto services.
Furthermore, AMLA will gain the authority to carry out direct supervision over crypto service providers operating in at least six EU member states (one home country and five countries under the 'passporting' principle).
The first wave of direct supervision (up to July 1, 2027) will include a maximum of 40 companies, at least one in each member state.
The criteria for selection will be: the presence of at least 20,000 clients in the host state or a transaction volume of over 50 million euros in the host jurisdiction.
Such threshold values will be enshrined in regulatory technical standards that will determine which companies have a 'material presence' in EU countries and deserve direct AMLA oversight.
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