#EUPrivacyCoinBan
The European Union is set to implement a comprehensive ban on privacy-focused cryptocurrencies and anonymous crypto accounts by July 1, 2027, under its new Anti-Money Laundering Regulation (AMLR). This move aims to enhance financial transparency and combat illicit activities within the crypto ecosystem.
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### 🔒 Key Provisions of the AMLR
- **Ban on Privacy Coins**:Cryptocurrencies that offer enhanced anonymity features, such as Monero (XMR), Zcash (ZEC), and Dash, will be prohibited. These coins are targeted due to their potential use in concealing illicit transactions
- **Prohibition of Anonymous Accounts**:Crypto Asset Service Providers (CASPs), including exchanges and financial institutions, will be required to eliminate anonymous accounts and implement stringent Know Your Customer (KYC) protocols
- **Transaction Thresholds**:Any crypto transaction exceeding €1,000 will necessitate full identity verification for both the sender and the receiver, aligning crypto transactions with traditional banking standards
- **Establishment of AMLA**:A new supervisory body, the Anti-Money Laundering Authority (AMLA), will oversee compliance, directly supervising up to 40 CASPs operating across at least six EU member states
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### 📉 Market Impact
The announcement has led to immediate market reactions. Monero's price dropped by 8.3% to $132.45, while Zcash saw a decline of 6.7% to $28.15 shortly after the news broke. Trading volumes for these privacy coins spiked, indicating heightened market activity and volatilit.
