On 08/05/2025, Eurogroup President Paschal Donohoe announced that the EU would monitor crypto transaction data from service providers, under the new anti-money laundering regulation (AMLR) starting from 01/07/2027. This regulation is controversial, will it push the crypto industry into the shadows? Let's analyze in detail.


EU Strengthens Crypto Monitoring with AMLR

At the EU 2025 Conference on Financial Crime, Paschal Donohoe, Ireland's Minister of Finance, stated that #Eu will apply anti-money laundering (AML) regulations to crypto, requiring the recording of sender and receiver information from crypto asset service providers (CASP). From 01/07/2027, AMLR prohibits CASP from transacting with anonymous wallets and privacy coins, while requiring exchanges and custodial wallets to verify the identity of users of self-hosted wallets for transactions over 1,000 EUR. Agencies such as the Financial Intelligence Unit and the EU Anti-Money Laundering Agency will have direct access to crypto account data.


Reactions from the Crypto Industry: 'Over-Monitoring'

Riccardo Spagni, a Monero developer, criticized #AMLR as 'over-monitoring,' completely banning privacy coins like Monero, going beyond the risk-based approach applied to cash or encrypted messaging. He argues that the regulation does not reduce crime – as criminals can trade P2P or through offshore exchanges – but only strips privacy from legitimate users, contradicting Articles 7 and 8 of the EU Charter on data protection. Spagni predicts upcoming legal challenges and proposes reasonable limits similar to those for cash.


James Toledano, COO of Unity Wallet, supports AML when converting or withdrawing funds, but warns that the regulation threatens the decentralized spirit of DeFi, pushing users and developers into less transparent channels like the black market, akin to the early stages of crypto. He believes users will seek ways to bypass the law through global channels.


Impact on the Crypto Market

This event signals many things:



  • Shrinking EU ecosystem: Binance and Kraken have withdrawn privacy coins, users are moving to DEX and P2P outside the EU.


  • Increased privacy risks: Legitimate users lose data protection rights, while criminals continue to operate, affecting coins like Monero and Zcash.


  • Long-term growth: Crypto fund inflows reached 3.4 billion USD last week, but the forecast accumulates to 330 billion USD in Bitcoin by 2029 (Bernstein) needs a balanced legal framework.



Future Prospects

Without adjustments, AMLR could push the EU into a backward state in the crypto sector in the next 2-3 years, as users move to less restrictive areas. However, legal challenges may force the EU to relax regulations, creating opportunities for DeFi to grow.


Conclusion: Is the EU Losing the Future of Crypto?

The EU will implement AMLR from 2027, monitoring crypto transactions and banning privacy coins, raising privacy concerns. While aimed at combating money laundering, the regulation could push legitimate users into the black market, narrowing the EU ecosystem. Investors should closely monitor to assess long-term impacts.


Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong