The recent anti-money laundering regulation passed by the EU has sparked intense debate about the boundaries of government power and the protection of financial privacy. This regulation is set to take effect in July 2027, and its core content includes the prohibition of anonymous crypto accounts and privacy coins, requiring identity verification for crypto transactions exceeding 1,000 euros, and establishing an anti-money laundering authority to directly supervise large platforms. This policy is seen by supporters as a necessary measure to combat illegal activities, while critics argue that it infringes on personal privacy and financial autonomy. In 2023, the global amount of cryptocurrency-related crime reached 59 billion dollars, with anonymous transactions accounting for over 30%. The EU's adoption of AMLR mandates transaction transparency, which can effectively disrupt the chain of criminal funds and aligns with global anti-money laundering standards. Anonymity fosters the risk of fraud and asset theft. Statistics show that in 2024, personal losses in the EU due to cryptocurrency fraud averaged 23,000 euros. The AMLR, through KYC/AML requirements, can reduce fake projects, phishing attacks, and private key theft incidents, enhancing user trust. Anonymous crypto assets may weaken traditional financial regulatory frameworks. For instance, unregulated privacy coin transactions could disrupt the transmission of monetary policy, while the AMLR incorporates cryptocurrencies into a unified regulatory system, helping to prevent systemic risks. The EU's AMLR represents a redefinition of 'regulatory power' and 'privacy rights' in the digital economy era. Its necessity lies in curbing crime, protecting users, and maintaining financial stability, but excessive intervention may stifle innovation and undermine individual rights. The ideal path should seek a dynamic balance between transparency and privacy, security and freedom, achieving 'bounded regulation' through technological means and policy flexibility. This process not only tests the EU's governance wisdom but will also provide a key model for global digital asset regulation.