The European Union has finalized its decision to ban privacy coins and anonymous cryptocurrency wallets by July 1, 2027, marking a decisive turn in the bloc’s anti-money laundering (AML) strategy.
Under the newly adopted Anti-Money Laundering Regulation (AMLR), crypto assets that enable anonymous transactions—such as Monero (XMR), Zcash (ZEC), and Dash—will be prohibited across the EU. The move represents a broader effort by regulators to align digital assets with traditional financial systems to reduce illicit economic activity.
The AMLR mandates that all crypto asset service providers (CASPs), financial institutions, and exchanges cease supporting privacy-preserving tokens or accounts that obscure customer identity.
The Article 79 of the EU new regulatory plan specifically prohibits the usage and maintenance of anonymous crypto assets , and it was further reaffirmed by the European Crypto Initiative’s newest AML Handbook.
According to regulators, the rules are designed to remove loopholes in existing AML policies that have allowed crypto users to bypass the transparency standards required of conventional banking systems.