#EUPrivacyCoinBan

The European Union has finalized a decision to ban privacy coins and anonymous cryptocurrency wallets by July 1, 2027, as part of its Anti-Money Laundering Regulation (AMLR). This move aims to reduce illicit economic activity and align digital assets with traditional financial systems.

*Affected Privacy Coins:*

- *Monero (XMR)*: Known for its ring signature technology to hide transaction details

- *Zcash (ZEC)*: Uses zero-knowledge proofs to enable private transactions

- *Dash (DASH)*: Features a mixing service to anonymize transactions

*Key Provisions of the AMLR:*

- *Ban on Anonymous Accounts*: Crypto asset service providers, financial institutions, and exchanges will no longer support anonymous accounts or privacy-preserving tokens.

- *Identity Verification*: Transactions exceeding €1,000 will require sender and receiver identity verification.

- *Centralized Enforcement*: The Anti-Money Laundering Authority (AMLA) will oversee implementation, supervising major crypto firms operating across multiple EU countries.

*Impact and Reactions:*

- *Market Response*: Prices of affected coins like Monero and Zcash dropped significantly following the announcement.

- *Criticism*: Privacy advocates argue that the ban could erode civil liberties and financial privacy, while regulators believe it's necessary to combat money laundering.