#EUPrivacyCoinBan

The EU’s Privacy-Coin Ban Under the New Anti-Money Laundering Rules

Starting July 1, 2027, the European Union will implement a sweeping ban on privacy-focused cryptocurrencies as part of its updated Anti-Money Laundering Regulation (AMLR). Article 79 of the regulation prohibits all "privacy-preserving tokens"—including Monero, Zcash, and Dash—as well as any anonymous crypto wallets or accounts within EU member states.

Key Provisions:

Scope: The ban applies to both privacy coins and any crypto wallets or accounts that do not comply with full Know-Your-Customer (KYC) requirements.

Supervision Thresholds: Crypto-asset service providers (CASPs) with either 20,000 or more users in a single EU country, or over €50 million in annual crypto transaction volume, will come under the direct oversight of the new EU Anti-Money Laundering Authority (AMLA).

Transaction Monitoring: All crypto transfers above €1,000 must include verified identity information, aligning crypto transactions with the standards applied to traditional financial institutions.

Implications:

These rules will lead to the removal or blocking of privacy coins on EU-based exchanges and platforms. While supporters see the regulation as a necessary step to combat illicit financial activity and boost transparency, critics argue it could hinder innovation and drive users toward decentralized, offshore, or unregulated alternatives.

With this regulation, the EU is signaling a decisive shift: by 2027, crypto assets will be required to follow the same anti-money laundering standards as the banking sector—effectively ending anonymous blockchain transactions within the region.