The European Union reaches a decisive milestone in the regulation of cryptocurrencies. With the adoption of the Anti-Money Laundering Regulation (AMLR), set to come into effect on July 1, 2027, Brussels imposes increased traceability of crypto transactions, ending on-chain anonymity.

🔍 AMLR: the end of on-chain anonymity

The AMLR regulation specifically targets privacy-focused cryptocurrencies, such as Monero (XMR) and Zcash (ZEC), by prohibiting their use and exchange through regulated platforms. Crypto-asset service providers (CASPs) will now be required to systematically identify the sender and recipient of each transaction, including for self-hosted wallets when they interact with regulated services.

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🛡️ AMLA: an eye on the crypto ecosystem

To oversee the implementation of these measures, the European Union has created the European Anti-Money Laundering Authority (AMLA). This entity will directly supervise up to 40 crypto providers operating in at least six member states and managing over 20,000 accounts or 50 million euros in annual volumes.

⚠️ Critiques on the effectiveness and scope

Voices are rising against this regulation, labeling it an infringement on financial privacy. Riccardo Spagni, a developer of Monero, denounces a systematic surveillance that could push users towards unregulated solutions.

🧭 Towards a redefinition of financial privacy

With the AMLR, the European Union redefines the contours of financial privacy in the digital age. While the stated objective is to combat money laundering, the implementation of these measures raises questions about the balance between security and individual freedom.

source: Cryptoast.fr