#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)*: A cryptocurrency focused on privacy and anonymity.
- *Zcash (ZEC)*: A decentralized and privacy-focused cryptocurrency.
- *Dash*: A cryptocurrency offering enhanced privacy features.
*Key Provisions of the AMLR:
- *Ban on Anonymous Accounts*: Financial institutions, credit entities, and crypto asset service providers (CASPs) will be prohibited from managing anonymous accounts and supporting privacy-focused cryptocurrencies.
- *Identity Verification*: Any single transfer above €1,000 will require the sender and receiver's identity verification.
- *Centralized Enforcement*: The Anti-Money Laundering Authority (AMLA) will oversee the implementation of the new framework, supervising at least 40 CASPs across six or more EU member states
*Impact on Crypto Users:*
- Users holding privacy coins like Monero, Zcash, and Dash will need to explore alternative options before the ban takes effect.
- Crypto platforms will need to implement stricter Know Your Customer (KYC) checks and monitor transactions.
- Users may need to comply with enhanced due diligence for high-risk transactions involving self-hosted wallets ³.