The proposed ban on privacy coins by the EU aims to combat illegal activities such as money laundering and terrorist financing, but it has sparked controversy over privacy and compliance. Privacy coins like Monero ensure transaction anonymity through cryptographic technology, which objectively provides a covert channel for crime but also protects users' financial privacy rights. If the ban is implemented, it may stifle innovation in blockchain technology and accelerate the iteration of privacy technology towards compliance (such as controllable anonymity). Regulation needs to balance security and freedom, avoid a one-size-fits-all approach, and promote transparent governance within a technology-neutral framework to find a dynamic balance between curbing crime and protecting privacy.