The European Union recently passed the Markets in Crypto-Assets Regulation (MiCA), imposing restrictions on privacy coins like Monero and Zcash, prohibiting crypto asset service providers from supporting tokens with built-in anonymity features. This move aims to combat money laundering and terrorist financing, enhancing financial transparency.

However, the core value of privacy coins is to safeguard users' financial privacy. In an era of increasing digital surveillance, some users indeed need anonymous transactions to protect their rights. The ban may force these individuals to turn to decentralized or unregulated markets, thereby increasing risks.

Overall, while the EU's actions may help enhance compliance, they could also sacrifice some citizens' privacy freedoms. Finding a balance between security and freedom remains an unresolved challenge.