#EUPrivacyCoinBan
The European Union has enacted a significant regulatory shift by approving the Anti-Money Laundering Regulation (AMLR), which mandates a ban on privacy-focused cryptocurrencies and anonymous crypto accounts starting July 1, 2027.
Key Provisions of the AMLR
Ban on Privacy Coins: Cryptocurrencies that prioritize user anonymity, such as Monero (XMR), Zcash (ZEC), and Dash (DASH), will be prohibited. Crypto service providers, including exchanges and financial institutions, will be required to delist these tokens and cease support for them within the EU.
Prohibition of Anonymous Accounts: All crypto accounts and wallets that do not comply with Know Your Customer (KYC) protocols will be banned. This measure aims to eliminate anonymous transactions within the EU's financial system.
Transaction Thresholds: Any crypto transaction exceeding ā¬1,000 will necessitate full identity verification of both the sender and the receiver, aligning crypto transactions with traditional banking standards.
Establishment of AMLA: A new supervisory body, the Anti-Money Laundering Authority (AMLA), will oversee compliance. AMLA will directly supervise up to 40 crypto asset service providers operating across at least six EU member states, focusing on entities with significant user bases or transaction volumes.
Market Impact
Following the announcement, privacy coins experienced notable price volatility. Monero (XMR) and Zcash (ZEC) saw price declines of 7.2% and 5.8%, respectively, shortly after the news broke. However, some recovery was observed as the market adjusted to the forthcoming regulations.
Reactions and Implications
Critics argue that the ban on privacy coins and anonymous accounts may stifle innovation and infringe upon individual financial privacy. Privacy advocates highlight that such tools are essential for protecting user anonymity and are not solely used for illicit activities.