Think about it, the ring signature technology of Monero, the zero-knowledge proof of Zcash, these once-celebrated "black technologies" that thrilled hackers and money launderers, have now become ticking time bombs on the road to compliance. Even more astonishingly, while self-custody wallets have not been directly banned, as long as the transfer exceeds 1000 euros, exchanges must strip away your identity information like checking household registration: name, address, source of funds, not a single one can escape!

The market response is even more surreal: as soon as the news broke, the prices of privacy coins plummeted, yet the next day Monero actually rose by 5%! This operation made the retail investors exclaim, "The stricter the regulation, the stronger the belief." However, experts warn that this is just the calm before the storm—once the deadline in 2027 arrives, these coins will either change their appearance or completely fade away.

2. Self-Custody Wallets: Appearing Free, but Actually Under Constant Surveillance

Do self-custody wallet users think they can escape a calamity? Naive! The new regulations require exchanges to perform "Customer Due Diligence" (CDD) on every transfer from self-custody wallets. For example: if you use a cold wallet to transfer $USDC to an exchange.