The comprehensive anti-money laundering regulations that the EU is about to implement will pose a significant challenge to the anonymity of cryptocurrencies, prohibiting anonymous accounts and privacy coins. (Background: On-chain detective warns: Suspected $330 million Bitcoin stolen and laundered into Monero, XMR surged 50% at one point) (Background information: Apple and Meta were heavily fined €700 million for violating the EU's 'Digital Markets Act', is using encrypted payments in the App Store not far off?) According to reports, the EU is preparing to implement stricter regulations on the rapidly developing cryptocurrency market, with a comprehensive anti-money laundering regulation expected to take effect in 2027, prohibiting anonymous accounts and targeting privacy coins like Monero (XMR) and Zcash, posing a serious challenge to the anonymity of cryptocurrencies. Is this the end for privacy coins? The EU's new regulations are aimed at XMR, Zcash... The core of this EU regulation (Anti-Money Laundering Regulation, AMLR) to be implemented in two years is a complete ban on anonymous cryptocurrency accounts and privacy coins. According to Article 79 of AMLR, in the future, credit institutions, financial institutions, and crypto asset service providers (CASPs, i.e., crypto service providers) are all prohibited from maintaining anonymous accounts or processing privacy coins. The EU Crypto Initiative (EUCI) handbook also confirms that this provision explicitly prohibits anonymous accounts, aiming to enhance transaction transparency and prevent illegal activities. This means that in the past year, some European exchanges have gradually delisted privacy coins like Monero (XMR) and Zcash, and the chances of relisting are becoming slimmer, which also tightens the constraints on DeFi development, and the details will have significant impacts. AMLR is part of the EU's anti-money laundering framework, which actually targets not only cryptocurrencies but also traditional financial anonymity tools. While the main framework has been established, specific details will be refined by institutions like EBA through implementing legislation, and this also means that centralized CASPs regulated under MiCA (Markets in Crypto-Assets) need to plan for compliance in advance. AMLA oversight and transaction transparency It is understood that the new Anti-Money Laundering Authority (AMLA) will oversee the compliance of cross-border operating CASPs. AMLA will screen entities for direct supervision based on 'materiality thresholds' such as the number of customers or transaction volumes, initially overseeing 40 entities starting from July 2027, ensuring at least one in each member state. Additionally, the new regulations mandate customer due diligence (KYC) for transactions exceeding €1,000 (approximately $1,100), and even strengthen due diligence to be consistent with traditional banking standards. Market challenges and privacy rights debate It can be anticipated that CASPs in the EU will face greater compliance pressure after the new regulations take effect, especially concerning self-custodial wallets and cross-border transactions, requiring enhanced KYC/AML processes; some traders may migrate to more lenient jurisdictions. At the same time, this has sparked a debate on financial anonymity and privacy rights, questioning whether this new regulation is necessary to combat financial crime or an excessive restriction on crypto innovation and privacy. The details after implementation and the global chain reaction will be worth continuous attention from the industry. Related reports SEC's 'Spring Sprint' forum collaborates with the industry to build a regulatory framework, crypto mom: NFTs could be the next target. New US stablecoin regulations come into effect, what 'fatal details' are hidden within? The US Office of the Comptroller of the Currency relaxes regulations! Banks can custody crypto assets, stablecoin transactions without prior approval.

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