1. The new EU regulation on Anti-Money Laundering (AML) for crypto
On April 24, 2025, the European Parliament officially passed a comprehensive AML regulatory package, for the first time including cryptocurrencies as a core component. Key points include:
• Crypto exchanges and wallets are required to verify identity (KYC) with all customers – the concept of an 'anonymous wallet' is no longer valid.
• The cash transaction limit is 3,000 EUR and crypto transactions without identity verification is 1,000 EUR.
• Establishing the European Anti-Money Laundering Authority (AMLA) with the power to oversee and intervene in the operations of crypto exchanges operating within the EU.
• All virtual asset service providers (VASPs) must strictly comply with AML & KYC regulations.
2. Impact on the cryptocurrency market
Positive:
• Increasing transparency and legitimizing the crypto market in the eyes of institutional investors.
• Paving the way for the participation of banks, investment funds, and large financial institutions in the EU.
• Reducing risks of fraud, scams, and financial crimes through crypto – making the market more sustainable.
Negative:
• Creating legal pressure on decentralized exchanges (DEX), non-custodial wallets, and services that do not require KYC.
• Some capital may leave the EU in the short term due to concerns about strict controls.
• Users are turning to other security and anonymity solutions – causing volatility in related tokens.
3. The most heavily affected coins
A. Privacy-focused coins:
• Monero (XMR), Zcash (ZEC), Dash (DASH) – This is the group most negatively affected because:
• High anonymity makes them at risk of being banned from trading on EU exchanges.
• Risk of being avoided by investors due to legal risks.
B. Tokens in the non-custodial wallet ecosystem:
• Tokens such as TWT (Trust Wallet Token), XDEFI,…
• They will face difficulties if regulations tighten on platforms without KYC controls.
• However, there is still room for growth if users flock to decentralized solutions.
C. Non-compliant stablecoins with EU legal standards:
• USDT (Tether) may face greater pressure compared to USDC, EURe (Anchored Euro), or PYUSD – which are transparent and issued by highly compliant organizations.
4. Conclusion & recommendations
• The EU is leading in regulating crypto towards legalization but with strict controls.
• Investors should closely monitor projects affected regarding privacy and decentralized wallets.
• USDC, EURe, and legally compliant stablecoins may increase their appeal and capital flow following this regulation.
