#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 designed for private and instant transactions.

*Key Aspects of the Ban:*

- *Prohibited Activities*: Crypto asset service providers (CASPs), financial institutions, and exchanges will be prohibited from supporting privacy-preserving tokens or accounts that obscure customer identity.

- *Identity Verification*: Transfers above €1,000 will require identity verification for both sender and receiver.

- *Supervision*: The Anti-Money Laundering Authority (AMLA) will oversee the implementation of the new framework, supervising around 40 CASPs across six or more EU member states.

*Impact and Reactions:*

- *Market Response*: The announcement led to a significant price decline for XMR and ZEC, with traders shifting to jurisdictions like Dubai for regulatory relief.

- *Criticism*: Privacy advocates argue that the ban could erode civil liberties and financial privacy, while regulators believe it's necessary to prevent crypto from being used for illicit activities.