#EUPrivacyCoinBan

The upcoming privacy coin ban from the EU is part of the updated Anti-Money Laundering Regulation (AMLR), effective from July 1, 2027. According to Article 79, all "privacy-preserving tokens" (e.g., Monero, Zcash, Dash) and anonymous crypto accounts will be prohibited in member states. Service providers—banks, exchanges, and Crypto Asset Service Providers (CASPs)—must cease offering or managing accounts or tokens that enable transaction anonymization.

Key points:

Scope: The ban covers privacy coins and wallets/accounts that do not have complete Know-Your-Customer (KYC) identification.

Threshold: CASPs with ≥ 20,000 clients in one member state or ≥ €50 million annual crypto volume face direct oversight by the EU Anti-Money Laundering Authority (AMLA).

Transaction monitoring: All crypto transfers over €1,000 require identity verification, aligning crypto flows with traditional financial standards.

Implications: Trading privacy coins on EU platforms will be delisted or blocked, potentially pushing activity to unregulated or non-EU jurisdictions. Critics warn that this could stifle innovation and push users towards decentralized or offshore services. Supporters argue that this is crucial for preventing illegal finance and increasing transparency in the European digital asset market.

Ultimately, the EU deadline in 2027 marks an important shift: crypto assets must now "comply with the same AML rules" as banks, ending the era of on-chain anonymity in its jurisdiction.