PRIVACY! ๐ซ NO MORE ANONYMOUS CRYPTO ACCOUNTS, DECIDES EU๐ฎ
๐ฃ The European Unionโs Anti-Money Laundering Regulation (AMLR), effective July 1, 2027, will ban privacy coins like Monero, Zcash, and Dash, alongside anonymous crypto accounts, to combat illicit financial activities.
๐Under Article 79, financial institutions and crypto asset service providers (CASPs) are prohibited from handling anonymity-enhancing cryptocurrencies or maintaining anonymous accounts. This aligns crypto regulations with traditional banking, mandating Know Your Customer (KYC) checks for transactions exceeding โฌ1,000.
๐The Anti-Money Laundering Authority (AMLA) will oversee compliance, targeting 40 major CASPs operating across at least six EU states, with thresholds of 20,000 users or โฌ50 million in annual transactions.
๐Critics argue this heavy-handed approach stifles innovation and erodes financial privacy, impacting not just criminals but activists, journalists, and privacy-conscious citizens.
๐Supporters, however, see it as essential for curbing money laundering and terrorist financing, enhancing transparency in digital finance.
๐The ban may reduce liquidity and trading volumes for privacy coins, with exchanges likely delisting them, as seen with Moneroโs 8.1% price drop post-announcement in May 2025.
๐Decentralized exchanges and non-EU jurisdictions like Dubai could see increased activity as users seek alternatives. While privacy coins remain legal for individual use, restrictions on institutional handling may limit their practical utility.
๐The EUโs move signals a broader global trend toward stricter crypto oversight, potentially reshaping the decentralized finance landscape and pushing innovation to less regulated regions.
