#EUPrivacyCoinBan

The European Union (EU) is set to ban privacy coins and anonymous cryptocurrency accounts starting July 1, 2027, under the new Anti-Money Laundering Regulation (AMLR). This regulation prohibits credit institutions, financial institutions, and crypto-asset service providers (CASPs) from handling privacy-preserving cryptocurrencies like Monero (XMR), Zcash (ZEC), and Dash, which are designed to obscure transaction details. The AMLR also mandates identity verification (KYC) for crypto transactions exceeding €1,000, aligning crypto rules with traditional banking standards. A new Anti-Money Laundering Authority (AMLA) will oversee compliance, directly supervising around 40 major crypto platforms operating in at least six EU countries, targeting those with over 20,000 users or €50 million in annual transactions.

The ban aims to curb money laundering, tax evasion, and terrorist financing, which regulators associate with anonymous transactions. Critics argue it could stifle innovation, infringe on financial privacy, and push privacy-focused projects to jurisdictions with looser regulations, like Dubai. Privacy coins will remain legal for individual use, but centralized exchanges and financial entities in the EU will be barred from supporting them, potentially reducing liquidity and trading volumes. Decentralized exchanges and peer-to-peer trading may offer workarounds, but their accessibility could be limited. The regulation’s final implementation details are still being refined through delegated acts by the European Banking Authority.

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