EU Moves to Ban Privacy Coins by 2027 under New AML Rules#EUPrivacyCoinBan

EU Moves to Ban Privacy Coins by 2027 under New AML Rules

The European Union has officially adopted the Anti-Money Laundering Regulation (AMLR), targeting enhanced oversight of cryptocurrency transactions. As part of this new framework, the EU will ban anonymous crypto wallets and privacy coins such as Monero (XMR), Zcash (ZEC), and Dash (DASH). The regulation, set to take effect on July 1, 2027, aims to prevent illicit financial activity by enforcing transparency.

Under the new rules, all crypto transactions over €1,000 will require identity verification. This marks a significant shift from the decentralized, privacy-centric ethos of many cryptocurrencies. The ban is likely to have major implications for crypto exchanges operating in the EU, which must comply with the regulation or risk legal consequences. Major platforms like Binance have already signaled intentions to adapt.

Supporters argue this move will deter money laundering and terrorism financing. Critics, however, view it as a blow to financial privacy and decentralization.

As privacy coins lose favor in regulated markets, the crypto industry may face pressure to increase compliance and transparency worldwide.