#EUPrivacyCoinBan The European Union is advancing stringent regulations targeting privacy-focused cryptocurrencies and anonymous transactions as part of its broader anti-money laundering (AML) initiatives.

Key Developments

Ban on Privacy Coins: The EU has proposed a comprehensive ban on privacy-enhancing cryptocurrencies such as Monero (XMR), Zcash (ZEC), and Dash (DASH). Under the new regulations, financial institutions and crypto-asset service providers will be prohibited from handling these coins. This move aims to curb illicit activities facilitated by the anonymity these coins provide.

Restrictions on Anonymous Transactions: The legislation also bans anonymous cryptocurrency transactions, particularly those involving self-custody wallets. Any crypto payments made using unidentified self-custody wallets to hosted wallets will be prohibited, regardless of the transaction amount.

Cash Transaction Limits: In addition to crypto regulations, the EU has imposed limits on cash transactions. Anonymous cash payments exceeding €3,000 in commercial transactions will be banned, and all cash payments over €10,000 in business transactions will be prohibited.

Implementation Timeline

These regulations are expected to be fully operational within three years of their official entry into force. However, some legal experts anticipate that enforcement could commence sooner.

Reactions and Implications

The proposed measures have sparked significant debate. Critics argue that such stringent regulations may infringe on individual privacy rights and hinder financial freedom. Patrick Breyer, a member of the European Parliament, voiced concerns that the ban could impact law-abiding citizens more than it deters criminal activities.

Furthermore, the crackdown on privacy coins has led to their delisting from