The European Union has finalized its decision to ban privacy coins and anonymous cryptocurrency wallets by July 1, 2027, as part of its anti-money laundering (AML) strategy. This move aims to enhance financial transparency and mitigate risks associated with anonymous crypto transactions.¹
Key Updates:
- Banned Coins: Privacy coins like Monero (XMR), Zcash (ZEC), and Dash will be prohibited across the EU.
- Anonymous Wallets: Anonymous crypto accounts and wallets will no longer be supported by exchanges and financial institutions.
- Transaction Verification: Any single transfer above €1,000 will require sender and receiver identity verification.
- New Authority: The Anti-Money Laundering Authority (AMLA) will oversee the implementation of the new framework, supervising around 40 major crypto service providers.
Impact on Crypto Industry:
- Market Reaction: Monero (XMR) and Zcash (ZEC) saw significant price declines following the announcement.
- Regulatory Compliance: Crypto service providers will need to implement stricter Know Your Customer (KYC) checks and verify customer identities.
- Shift to Transparency: The EU aims to align digital assets with traditional financial systems, reducing illicit economic activity.²
Timeline:
- July 1, 2025: A new authority, AMLA, will be established to oversee crypto compliance.
- July 1, 2027: The ban on privacy coins and anonymous wallets will take effect.#AmericaAIActionPlan #BTRPreTGE #StopLossStrategies