Privacy Coins to Be Banned in the EU by 2027 Under New AML Rules
The European Union has officially approved the Anti-Money Laundering Regulation (AMLR), introducing a sweeping set of compliance requirements for the crypto industry. Among the most impactful changes is the outright ban on privacy coins—such as Monero (XMR), Zcash (ZEC), and Dash (DASH)—which will take effect on July 1, 2027. These assets, known for their enhanced anonymity features, will no longer be allowed for use, trade, or custody by crypto-asset service providers (CASPs) operating within the EU.
The AMLR mandates strict Know Your Customer (KYC) policies, including identity verification for all users and transactions over €1,000. In addition, the EU will establish a new Anti-Money Laundering Authority (AMLA) to supervise compliance, particularly for platforms serving over 20,000 users or handling more than €50 million annually.
While these changes aim to combat illicit finance and bring crypto in line with traditional financial systems, they also raise concerns about privacy and innovation. As the 2027 deadline approaches, EU-based users and projects will need to adapt to a new era of regulated digital assets.
