The European Union has signed a comprehensive regulation that bans anonymous crypto accounts and privacy-focused coins like Monero (XMR), Zcash (ZEC), and Dash, effective July 1, 2027.
The Anti-Money Laundering Regulation (AMLR), which the European Union has been working on for a long time, is finally coming into effect. The new regulations completely prohibit financial institutions and crypto service providers from opening anonymous accounts or using privacy-oriented cryptocurrencies. In this context, particularly privacy-focused coins known as Monero (XMR), Zcash (ZEC), and Dash will not be able to operate within EU borders.
The AMLR, which will come into effect, introduces identity verification requirements for cryptocurrency transactions exceeding 1,000 euros. This represents a significant change for investors and users who utilize the anonymity advantage of cryptocurrencies. The European Union is also establishing a new supervision mechanism to closely monitor the implementation of these regulations: the European Anti-Money Laundering Authority (AMLA).
The level of supervision is increasing
With these new regulations from the European Union, crypto service providers operating in at least 6 different regions in member countries will fall directly under AMLA's supervision. In the first phase, about 40 crypto service providers will be identified, and supervision of these institutions will begin.
Platforms subject to AMLA supervision will be selected mainly from those with high transaction volumes and operating in different EU countries. To be directly supervised by AMLA, platforms need to reach a minimum of 20,000 customers or have total transaction volumes of at least 50 million euros.
The European Union's tough move will bring significant changes, especially for central exchanges and service providers. The new regulations seem to further increase the expectations for transparency and security in the crypto sector, along with the Crypto Assets Market Regulation (MiCA) that the EU implemented in the previous period.