The EU Privacy Coin Ban is an important regulation introduced by the EU to strengthen its oversight of the cryptocurrency industry. Below are some specific details regarding this ban:

Main Content

• Comprehensive ban on privacy coin trading: Starting July 1, 2027, the trading of privacy coins, such as Monero, Zcash, Dash, etc., will be completely prohibited.

• Prohibition of anonymous cryptocurrency accounts: Financial institutions and cryptocurrency service providers are prohibited from offering anonymous cryptocurrency accounts or wallets.

• Mandatory identity verification: Transactions exceeding 1000 euros must undergo mandatory identity verification.

• Establishment of new regulatory agency: A new regulatory agency, AMLA, will be established to directly oversee large cryptocurrency platforms.

Reasons for Introduction

With the development of the cryptocurrency market, the anonymity of privacy coins has been exploited by some criminals for illegal activities such as money laundering and terrorist financing. In recent years, there has been an upward trend in illegal fund flows using privacy coins, which has drawn significant attention from EU regulatory bodies. In order to maintain financial stability and security, and to combat criminal activities, the EU has decided to introduce this ban.

Impact

This ban will have a tremendous impact on the privacy coin market, and the entire cryptocurrency industry will face a more stringent regulatory environment. Some innovative projects relying on privacy coins may be hindered. Meanwhile, businesses and investors related to privacy coins need to reassess their business and investment strategies before the ban takes effect in 2027, considering a transition to compliant cryptocurrencies or other fields.