#EUPrivacyCoinBan

Main content of the regulation

In May 2025, the EU adopted the Anti-Money Laundering Regulation (AMLR), which will take effect on July 1, 2027. According to this regulation: 

• Prohibition of privacy coins: Coins such as Monero (XMR), Zcash (ZEC), and Dash, designed to obscure transaction information to protect privacy, will be completely banned in the EU. 

• Prohibition of anonymous cryptocurrency accounts and wallets: Financial institutions and cryptocurrency asset service providers (CASPs) will not be allowed to offer accounts or wallets without verifying the user's identity. 

• Identity verification required for transactions over 1,000 euros: Any cryptocurrency transaction exceeding 1,000 euros will have to undergo an identity verification process (KYC). 

• Establishment of the European Anti-Money Laundering Authority (AMLA): This authority will oversee major cryptocurrency service providers, particularly those with over 20,000 users or annual revenue exceeding 50 million euros. 

Impact on users and the market

The ban on privacy coins and anonymous accounts will have a significant impact on users and exchanges in the EU:

• Users: Will not be able to use or trade privacy coins on legal platforms in the EU.

• Exchanges: Must remove privacy coins from their trading lists and ensure compliance with strict KYC regulations.

• Developers: Privacy-focused projects will struggle to operate or develop within the legal framework, undermining the decentralization of digital currency.