EU to Ban Privacy Coins by 2027: Major Regulatory Shift
The European Union has officially adopted the Anti-Money Laundering Regulation (AMLR), set to take effect on July 1, 2027. This regulation will prohibit all financial institutions from offering anonymous crypto accounts or wallets and will ban transactions involving privacy coins such as Monero (XMR), Zcash (ZEC), and Dash.
The AMLR mandates compulsory identity verification for crypto transactions exceeding €1,000, aligning crypto operations with traditional banking standards. Additionally, a new EU agency, the Anti-Money Laundering Authority (AMLA), will oversee major crypto firms operating within the bloc.
This move aims to enhance financial transparency and combat illicit activities within the crypto ecosystem. As a result, crypto service providers will need to implement robust know-your-customer (KYC) systems and reconsider their support for privacy-focused cryptocurrencies.
The ban has already impacted the market, with prices of affected privacy coins experiencing volatility. Traders and investors are now exploring jurisdictions with more favorable regulatory environments, such as Dubai, for continued operations.
This regulatory development marks a significant turning point for privacy coins and the broader crypto industry within the European Union.
