The European Union has officially approved the Anti-Money Laundering Regulation (AMLR), which includes a comprehensive ban on privacy-focused cryptocurrencies such as Monero (XMR), Zcash (ZEC), and Dash (DASH). This regulation is set to take effect on July 1, 2027, and aims to enhance transparency in the crypto sector by prohibiting anonymous transactions and the use of privacy coins .
Key Highlights of the AMLR:
Ban on Privacy Coins: The regulation will prohibit the use of cryptocurrencies that offer enhanced anonymity features, effectively banning privacy coins within the EU .
Restrictions on Anonymous Wallets: The AMLR also targets pseudonymous cryptocurrency accounts and self-custody wallets that allow for anonymized transactions .
Increased Oversight: Crypto Asset Service Providers (CASPs) operating across at least six EU member states will be under the direct supervision of the newly established Anti-Money Laundering Authority (AMLA) .
These measures are part of the EU's broader efforts to combat money laundering and illicit financial activities by increasing transparency in the cryptocurrency space. While the regulation aims to enhance security, it has raised concerns about financial privacy and the potential impact on legitimate use cases for privacy coins.
