#EUPrivacyCoinBan
The European Union is implementing stricter regulations on cryptocurrencies, particularly targeting privacy coins and anonymous transactions, as part of its broader anti-money laundering (AML) efforts.
⸻
🔒 Privacy Coins Face Regulatory Restrictions
Under the EU’s Anti-Money Laundering Regulation (AMLR), crypto-asset service providers (CASPs) are prohibited from offering services related to privacy-focused cryptocurrencies such as Monero (XMR), Zcash (ZEC), and Dash. These coins are designed to obscure transaction details, making them attractive for illicit activities. The AMLR aims to enhance transparency and prevent misuse of the financial system.  
⸻
🧳 Self-Custody Wallets Remain Legal
Contrary to some reports, the EU is not banning self-custody (non-custodial) wallets. Individuals can continue to use wallets where they control their private keys. However, transactions involving these wallets and CASPs will be subject to enhanced due diligence measures, including identity verification and blockchain analytics, to mitigate AML risks.   
⸻
🕵️♂️ Anonymous Transactions to Hosted Wallets Banned
The AMLR includes provisions that ban anonymous crypto payments to hosted wallets provided by CASPs. This means that users must undergo Know Your Customer (KYC) procedures when interacting with exchanges and other regulated entities. Peer-to-peer (P2P) transactions between private individuals using self-custody wallets are not affected by this regulation.  
⸻
📅 Implementation Timeline
The AMLR is expected to become fully operational by 2027, following approval from the European Parliament and the European Council. This timeline provides a transition period for CASPs and users to adapt to the new regulatory environment.