The European Union (EU) will officially ban all anonymous tokens such as Monero (XMR), Zcash (ZEC), and anonymous crypto accounts from 2027, as part of new anti-money laundering regulations (AMLR). This is a tough but not surprising move in the effort to tighten control over the EU's digital asset sector.



Anonymous tokens and anonymous wallets will be removed


According to Article 79 of the AMLR law published by the European Crypto Initiative (#EUCI ), financial institutions, banks, and cryptocurrency service providers (CASP) will not be allowed to hold anonymous accounts or process transactions related to coins with anonymity features. This applies not only to crypto but also extends to:



  • Traditional bank accounts


  • E-wallets



  • Savings accounts, secure safes


  • Payment accounts with identity concealment tools




Thus, the entire financial infrastructure, from traditional to blockchain, will have to be transparent about user identities.



CASP operating in many EU countries will be closely monitored


From 01/07/2027, CASP operating in at least 6 EU member states will be directly supervised by the European Anti-Money Laundering Authority (AMLA). In the initial phase, 40 organizations will be on the inspection list, ensuring that each country has at least one representative.


Two criteria to fall under supervision:



  • At least 20,000 customers in the host country



  • Or a total transaction value exceeding 50 million Euros (~56 million USD)




Additionally, crypto service providers must perform KYC (identity verification) for all transactions of 1,000 Euros (~1,100 USD) or more.



Centralized exchanges need to proactively adjust


According to Ms. Vyara Savova, a senior policy expert at EUCI, the AMLR legal framework has been passed, but detailed guidelines will still be supplemented by the European Banking Authority (EBA).


This means that centralized exchanges (CEX), especially those complying with #MiCA , need to promptly adjust internal processes to prepare for the AMLR regulations coming into effect.



Privacy coins are gradually being 'wiped out' globally


Anonymous coins – a type of cryptocurrency designed to conceal transaction information, have long been under the scrutiny of regulators due to the potential risk of money laundering and terrorist financing.


Before the EU, many countries and major exchanges have taken action:



  • 12/2023: OKX delists XMR, DASH, ZEC, and ZEN



  • 09/2023: Binance removes XMR, MOB, FIRO, and ZEN



  • 09/2022: Old Huobi (HTX) removes 7 privacy coins, including XMR, ZEC, DASH



  • South Korea, Japan, and Dubai have also implemented similar measures early on





Contact with the crypto market


The EU's ban on anonymous coins and anonymous wallets is not just a legal issue, but it also has a significant impact on crypto projects, exchanges, and users who use privacy coins as a security tool. With AMLR regulations set to take effect, European users will find it difficult to access or trade anonymous coins legally, forcing projects to be more transparent or change their operating models.


For Binance users or platforms adhering to MiCA, being aware of the new regulations helps avoid legal risks and ensures asset safety in the near future.



Risk warning


Investing in cryptocurrency carries significant risks and is not suitable for everyone. This article does not constitute an investment solicitation. Users should conduct thorough research and exercise caution before making financial decisions. #anhbacong