The proposed privacy coin ban by the EU will have a profound impact on the cryptocurrency market. This policy aims to prohibit the trading of anonymous coins such as Monero and Zcash to curb money laundering and illegal financing. In the short term, exchanges being forced to delist privacy coins will lead to a sharp decline in the liquidity of related coins, potentially triggering a sell-off and increased market volatility. In the long term, the DeFi sector may accelerate the development of compliant privacy technologies, such as "auditable anonymous" solutions using zero-knowledge proofs. Regulatory pressure may drive the industry to differentiate: compliant projects will strengthen KYC mechanisms, while hardcore privacy protocols may shift towards more covert off-chain transactions. This ban may trigger similar regulatory actions in other regions, forcing investors to reassess the legitimacy risks of privacy assets, while also stimulating the evolution of privacy protection technology and the escalation of regulatory evasion tools.