The European Union has approved a ban on privacy coins (such as Monero, Zcash, Dash) under the Anti-Money Laundering Regulation (AMLR), which will take effect on July 1, 2027, with the aim of enhancing transaction transparency and applying Know Your Customer (KYC) requirements to Cryptocurrency Service Providers (CASPs); platforms will be required to close anonymous accounts and remove these coins, which has led to a decline in Monero and Zcash markets and a migration of activity towards more lenient jurisdictions; the ban faces criticism for infringing on the right to financial privacy and calls to exploit decentralized networks to circumvent it.

Key Points

1. Timeline and Implementation

The ban will take effect starting July 1, 2027, under AMLR, with oversight from the European AMLA authority on enforcement and penalties.

The ban on "privacy coins" covers all CASPs operating in EU member states.

2. Requirements

Removal or prohibition of trading and holding Monero (XMR), Zcash (ZEC), Dash (DASH), and others.

Closure of anonymous accounts or conversion to fully verified accounts, and identity verification for any transaction exceeding €1,000.

3. Impacts

A decline in Monero prices by about 8% and Zcash by about 6% immediately following the announcement, with liquidity shifting to platforms outside the EU.

Migration of some developers and trades to more lenient jurisdictions (Dubai, U.S. states).

4. Criticism

Privacy advocates argue that it restricts legitimate uses of financial privacy.