Opinion: #EUPrivacyCoinBan – Between Privacy and Transparency in Crypto Regulation

The European Union's policy limiting privacy coins (such as Monero or Zcash) reflects efforts to address the risks of money laundering and illegal activities in the crypto sector. While the goal is noble, this step sparks debate: on one hand, transaction transparency is needed to comply with anti-money laundering and counter-terrorism financing (AML/CFT) regulations; on the other hand, privacy is a fundamental right of crypto users. This ban has the potential to stifle blockchain innovation and encourage project migration to more lenient jurisdictions. The key to the solution may lie in balance—adopting KYC/AML technology without sacrificing the essence of decentralization.