#EUPrivacyCoinBan

As of July 1, 2027, the European Union will implement a total ban on privacy-centered cryptocurrencies and anonymous accounts as part of its new Anti-Money Laundering Regulation (AMLR).

What does this regulation imply?

Ban on privacy coins: Cryptocurrencies such as Monero (XMR), Zcash (ZEC), and Dash (DASH), which offer anonymity in transactions, will be illegal for use and support by crypto asset service providers (CASPs) and financial entities within the EU.

Elimination of anonymous accounts: Exchange platforms and financial services will be required to eliminate all accounts that are not verified through Know Your Customer (KYC) procedures.

Mandatory identity verification: Any cryptocurrency transaction exceeding 1,000 euros will require identity verification for both the sender and the receiver.

Oversight by the Anti-Money Laundering Authority (AMLA): A new agency, the AMLA, will be established to directly oversee at least 40 CASPs operating in six or more member countries, particularly those with more than 20,000 users or an annual transaction volume exceeding 50 million euros.

Why is this measure being implemented?

The EU seeks to align the cryptocurrency ecosystem with traditional financial transparency standards, arguing that privacy coins facilitate illicit activities such as money laundering and terrorism financing.

Reactions and consequences

Criticism from privacy advocates: Activists and privacy advocates argue that this measure could negatively impact journalists, dissenters, and citizens who use these tools to protect their financial privacy.

Market impact: Following the announcement, declines in the prices of Monero and Zcash were observed. Some users are considering moving their operations to more friendly jurisdictions.