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EU to Ban Privacy Coins and Anonymous Crypto Accounts by 2027

The European Union is set to implement a significant regulatory shift by banning privacy-focused cryptocurrencies and anonymous crypto accounts starting July 1, 2027. This move is part of the newly adopted Anti-Money Laundering Regulation (AMLR), aiming to enhance financial transparency and combat illicit activities within the crypto ecosystem.

Under the AMLR, financial institutions, banks, and crypto asset service providers (CASPs) will be prohibited from maintaining or managing anonymous accounts. This includes the use of privacy coins such as Monero (XMR), Zcash (ZEC), and Dash, which are known for enabling anonymous transactions. Additionally, any crypto transaction exceeding €1,000 will require identity verification, aligning crypto operations more closely with traditional financial systems.

To ensure compliance, the EU will establish the Anti-Money Laundering Authority (AMLA), which will oversee major CASPs operating across multiple member states. Entities with over 20,000 users or handling more than €50 million in annual transactions will fall under AMLA's direct supervision.

While regulators argue that these measures are crucial for preventing money laundering and terrorist financing, critics express concerns about potential infringements on financial privacy and the stifling of innovation within the crypto space. The ban is expected to have significant implications for both crypto service providers and users within the EU.

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