EU Passes Landmark AML Regulation: Privacy Coins and Anonymous Crypto Accounts Banned by 2027
The European Union has officially adopted the Anti-Money Laundering Regulation (AMLR), ushering in a sweeping overhaul of crypto compliance rules across the bloc. One of the most consequential measures? A full ban on privacy coins and anonymous crypto accounts, set to take effect on July 1, 2027.
Under the new framework, financial institutions and crypto-asset service providers (CASPs) will be prohibited from holding or facilitating transactions involving privacy-focused cryptocurrencies such as Monero (XMRO) , Zcash (ZEC) $ZEC , and Dash $DASH
Accounts that enable anonymous transactions will also be phased out.
In a bid to enhance traceability, the AMLR mandates identity verification for all crypto transactions exceeding €1,000. To enforce these controls, the EU will establish a centralized watchdog—the Anti-Money Laundering Authority (AMLA)—tasked with directly supervising up to 40 major CASPs operating within member states.
Supporters of the regulation argue it will bolster transparency, prevent illicit activity, and align digital assets with traditional financial compliance standards. But critics warn the ban could stifle innovation and infringe on financial privacy—especially for activists, journalists, and individuals in authoritarian regions who rely on private transactions for safety.
This decisive move signals Europe’s growing commitment to regulated crypto markets—but it also raises a critical question:
Will this set a global precedent—or push privacy innovation elsewhere.