According to Cointelegraph, the European Union is preparing to implement stringent Anti-Money Laundering (AML) regulations by 2027, which are expected to significantly affect privacy-preserving tokens and anonymous cryptocurrency accounts. Under the new AML Regulation (AMLR), credit institutions, financial institutions, and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or handling privacy-focused cryptocurrencies. This development has sparked ongoing debates between blockchain industry participants and regulators over privacy rights.
Anja Blaj, an independent legal consultant and policy expert at the European Crypto Initiative, highlighted the ongoing struggle to maintain access to privacy-preserving coins like Monero (XMR). Speaking during Cointelegraph’s daily live X spaces show, Blaj emphasized the state's desire to establish control and understand the parties involved in transactions to prevent crime and enforce societal policies. Her comments come as the EU intensifies its regulatory oversight of the crypto industry, building on the Markets in Crypto-Assets Regulation (MiCA).
Despite the finalization of the AML framework, regulatory experts believe there is still room for negotiation before its implementation in 2027. Blaj noted that policymaking is a continuous conversation, suggesting that even finalized regulations can be subject to discussions with regulators regarding their enforcement. However, she acknowledged that regulations concerning privacy-preserving cryptocurrencies and accounts are becoming more stringent, as they do not align with state interests and planning.
In parallel, a separate EU proposal known as 'Chat Control' is gaining traction. This plan would require platforms like WhatsApp and Telegram to scan all messages, photos, and videos sent by users, even those protected with end-to-end encryption. Although fifteen member states support the bill, they do not represent the 65% of the EU population needed for adoption. Germany's hesitance remains a significant factor, but a shift in policy could be decisive in the proposal's future.
