The European Union has approved a ban on privacy coins (such as Monero, Zcash, and Dash) under the Anti-Money Laundering Regulation (AMLR), effective July 1, 2027, to enhance transaction transparency and enforce Know Your Customer (KYC) requirements for cryptocurrency service providers (CASPs). Platforms will be required to close anonymous accounts and delist these coins, leading to a decline in Monero and Zcash markets and a migration of activity to more lenient jurisdictions. The ban has been criticized for infringing on the right to financial privacy and calls for the exploitation of decentralized networks for fraud.

Key Points

1. Timeline and Implementation

The ban will take effect on July 1, 2027, under the AMLR, with the European Authority for Financial Regulation (AMLA) overseeing implementation and sanctions.

The ban on “privacy coins” covers all CASPs operating in the EU.

2. Requirements

Removing or prohibiting the trading and storage of Monero (XMR), Zcash (ZEC), Dash (DASH), and others.

Closing anonymous accounts or converting them to fully verified accounts, and verifying identity for any transaction exceeding €1,000.

3. Impacts

Monero prices fell by about 8% and Zcash by about 6% immediately after the announcement, as liquidity shifted to platforms outside the European Union.

Some developers and exchanges migrated to more permissive jurisdictions (Dubai, US states).

4. Criticisms

Privacy advocates argue that it restricts legitimate uses of financial privacy.$BTC $ETH $BNB