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 liquidity for these 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 anonymity' solutions based on zero-knowledge proofs. Regulatory pressure may drive industry differentiation: compliant projects will strengthen KYC mechanisms, while hardcore privacy protocols may shift towards more obscure off-chain transactions. This ban could prompt regulatory mimicry in other regions, forcing investors to reassess the legal risks of privacy assets while stimulating the innovation of privacy protection technologies and the escalation of tools for regulatory evasion.