EU to Enforce Strict AML Rules: Anonymous Crypto and Privacy Coins to Be Banned by 2027
The European Union is ushering in a new era of crypto regulation. Starting July 1, 2027, the EU will implement the Anti-Money Laundering Regulation (AMLR), a sweeping legislative framework that introduces some of the strictest anti-money laundering (AML) measures to date—particularly targeting the crypto space.
Under the AMLR, anonymous cryptocurrency accounts and privacy-focused coins such as Monero (XMR) and Zcash (ZEC) will be banned. The new regulation mandates that Crypto Asset Service Providers (CASPs), banks, and financial institutions operating within the EU must no longer support services that enable anonymous transactions.
The regulation specifically targets privacy-enhancing tokens and platforms that enable the anonymization of user activity, aligning the crypto sector with AML requirements long in place for traditional finance.
Key Highlights of the AMLR:
Ban on Privacy Coins: Monero, Zcash, and other privacy-focused cryptocurrencies will no longer be supported in the EU.
No More Anonymous Accounts: CASPs must ensure that all accounts are linked to verified identities.
Transaction Thresholds: Customer identity verification becomes mandatory for crypto transfers exceeding €1,000.
Enhanced Supervision: Firms operating in six or more EU member states, with over 20,000 users or more than €50 million in annual crypto transaction volume, will be subject to direct AML supervision.
This initiative is part of a broader effort by EU regulators to tighten oversight across all financial sectors, aiming to close loopholes that could be exploited for illicit activities. The AMLR sets a precedent that may influence global regulatory trends for crypto in the coming years.
At Binance, we remain committed to working closely with regulators, supporting compliance efforts, and promoting a secure and transparent crypto ecosystem.