$#EUPrivacyCoinBan

Key Updates on the EU Privacy Coin Ban

1. Ban Scope:

- Privacy coins like Monero (XMR), Zcash (ZEC), and Dash (DASH) will be prohibited in the EU.

- Anonymous crypto accounts (including self-custody wallets) will no longer be allowed.

2.Regulatory Framework:

- The Anti-Money Laundering Regulation (AMLR) enforces strict KYC/AML rules, requiring identity checks for transactions over €1,000.

- Article 79 of AMLR explicitly bans anonymization tools in crypto transactions.

3.Supervision & Enforcement:

- The new Anti-Money Laundering Authority (AMLA) will directly oversee 40 high-risk crypto firms operating in ≥6 EU states, with thresholds like:

20,000+ customers per member state or €50M+ in transaction volume.

4.Impact on Crypto Providers:

Exchanges/CASPs must delist privacy coins and implement full KYC by 2027 or face penalties.

Decentralized projects may be marginalized in the EU market.

5.Market Reaction:

Despite the ban announcement, Monero (XMR) & Zcash (ZEC) saw short-term price gains (5% and 3%, respectively).

➡️Timeline & Next Steps

July 2027: AMLR takes full effect; AMLA begins direct supervision.

2025–2027: Crypto firms must adapt policies to comply with AMLR and MiCA regulations.

➡️ Why This Matters

The EU aims to eliminate crypto anonymity to combat money laundering but faces criticism for potentially stifling financial privacy and innovation.