#EUPrivacyCoinBan The European Union (EU) has adopted new Anti-Money Laundering Regulation (AMLR) to increase its oversight of the cryptocurrency market. A key aspect of these new rules is the ban on anonymous cryptocurrency accounts and privacy-preserving cryptocurrencies, such as Monero (XMR), Zcash (ZEC), and Dash. This ban is set to take effect in 2027.

Under the AMLR, crypto asset service providers (CASPs), which include exchanges and financial institutions, will be prohibited from maintaining anonymous accounts or handling privacy coins. They will be required to collect and verify customer identification data (KYC) for all users. Additionally, the new regulations mandate identity verification for all crypto transactions exceeding €1,000.

To ensure compliance and oversee these new measures, the EU will establish the Anti-Money Laundering Authority (AMLA). This new authority will directly supervise up to 40 of the largest CASPs operating across the EU member states. These firms will fall under AMLA's direct scrutiny if they have more than 20,000 users or handle over €50 million in annual transactions.

Impact and Reactions:

* Price Drops: Following the announcement on May 2, 2025, privacy coins like Monero and Zcash experienced immediate price declines.