#EUPrivacyCoinBan The European Union has officially enacted a ban on privacy-focused cryptocurrencies and anonymous crypto accounts, set to take effect on July 1, 2027. This decision is part of the EU's new Anti-Money Laundering Regulation (AMLR), aiming to enhance financial transparency and combat illicit activities within the crypto ecosystem.

🔒 What the Ban Entails

Under the AMLR, financial institutions, banks, and crypto-asset service providers (CASPs) will be prohibited from:

Maintaining or managing anonymous accounts.

Handling cryptocurrencies that offer transaction anonymization features, such as Monero (XMR), Zcash (ZEC), and Dash (DASH).

Additionally, any crypto transaction exceeding €1,000 will require full identity verification of both the sender and receiver, aligning crypto transactions with traditional banking standards.

🏛️ Enforcement and Oversight

To ensure compliance, the EU is establishing the Anti-Money Laundering Authority (AMLA), which will oversee major CASPs operating within the bloc. AMLA will directly supervise up to 40 CASPs across at least six EU member states, focusing on entities with over 20,000 users or handling more than €50 million in annual transactions.

📉 Market Reaction

Following the announcement, privacy coins experienced notable price declines:

Monero (XMR) dropped by approximately 7.2%, from $128.45 to $119.20.

Zcash (ZEC) fell by about 5.8%, from $23.10 to $21.76.

These shifts reflect investor concerns over the future viability of privacy coins within the EU market.