#EUPrivacyCoinBan

A key element is the new *** Anti-Money Laundering Regulation (AMLR) ***, which is part of a broader EU legislative package to combat financial crime. This package was in June 2024 published in the Official Journal of the EU.

What AMLR means for privacy coins and anonymity in cryptocurrencies:

* Prohibition for service providers: AMLR prohibits regulated entities, such as banks, financial institutions, and crypto-asset service providers (CASPs) – which includes cryptocurrency exchanges – from offering or managing:

- Anonymous crypto accounts or wallets: It is not possible to have an account or wallet with a regulated provider without identity verification (KYC - Know Your Customer).

- Services for anonymity-enhancing coins (privacy coins): Regulated providers will not be allowed to hold or facilitate transactions with coins designed to hide the identity of the sender or receiver (e.g., Monero, Zcash, Dash).

* Objective: The main goal of these measures is to increase the transparency and traceability of crypto-asset transactions to prevent their misuse for money laundering, terrorist financing, and other criminal activities.

* Timing: While parts of the new AML/CFT framework and the MiCA (Markets in Crypto-Assets) regulation start applying gradually from the end of 2024, the specific prohibition concerning anonymous accounts and privacy coins for CASPs is expected, according to available information, to come into effect in 2027 (some sources mention July 1, 2027).

* Supervision: Compliance with the rules will be overseen by the new pan-European Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), based in Frankfurt, which will have the power to directly supervise some large financial institutions and CASPs.