The European Union has issued a controversial decision to ban privacy coins like Monero and Zcash, as well as anonymous cryptocurrency wallets, by 2027. This move is part of efforts to combat money laundering and terrorism financing.

The aim of this ban is to increase transparency in cryptocurrency transactions and facilitate their tracking, as privacy coins are seen as potential tools for illegal activities. Digital asset service providers will be required to collect customer identification data (KYC) from all users, effectively meaning the end of anonymous transactions in this space within the EU.

This decision raises concerns about its impact on innovation and privacy rights, and may push users and developers to seek alternative solutions outside the EU. This ban is expected to have a significant impact on cryptocurrency trading strategies and the future of decentralized finance.