#EUPrivacyCoinBan

EU's New Anti-Money Laundering Regulations: Impact on Privacy Coins

The European Union has enacted new anti-money laundering (AML) regulations, effectively banning privacy coins like Monero (XMR) by 2027. The European Crypto Initiative (EUCI) highlights that the regulation, adopted in mid-2024, aims to prevent money laundering and terrorist financing. Privacy coins, which obscure transaction histories, conflict with AML standards and pose challenges for regulators, as their anonymity can facilitate criminal activities.

While the ban primarily affects crypto service providers such as exchanges, individual users and self-hosted wallet providers remain unaffected. The regulations will be enforced by a newly established authority, the European Anti Money Laundering Agency (AMLA), beginning July 1, 2025, which will outline compliance guidelines. Although most exchanges have already delisted privacy coins, the regulations signify increased scrutiny and compliance obligations for businesses in the crypto space.