The EU's proposed ban on privacy coins aims to restrict transactions of anonymous cryptocurrencies such as Monero, with the core logic being to strengthen anti-money laundering regulations. Such coins achieve complete anonymity through technologies like ring signatures and zero-knowledge proofs, which objectively provide funding concealment channels for illicit activities. If the ban is implemented, exchanges will be forced to delist privacy coins, which may trigger short-term market fluctuations but will accelerate the integration of compliant crypto projects with regulatory frameworks in the long run. The point of contention lies in the fact that regulators emphasize financial security, while the tech community believes this move contradicts the decentralized spirit of blockchain and may push privacy technologies to evolve into more concealed forms. The future game of cat and mouse between regulation and privacy protection will continue to escalate.