The European Union is preparing to enforce sweeping anti-money laundering regulations that will outlaw privacy coins and anonymous crypto accounts starting in 2027.
Under the finalized Anti-Money Laundering Regulation (AMLR), financial institutions and crypto asset service providers (CASPs) will be prohibited from offering services tied to privacy-focused tokens such as Monero (XMR) and Zcash (ZEC), and from maintaining anonymous accounts of any kind.
Outlined in Article 79 of the AMLR, the rules target various forms of anonymized financial services including passbooks, safe-deposit boxes, and any crypto accounts that enable transaction anonymization. The European Crypto Initiative (EUCI) clarified in its AML Handbook that these prohibitions will apply across all EU member states.
Direct Supervision and Materiality Thresholds
Starting July 1, 2027, the newly established Anti-Money Laundering Authority (AMLA) will directly supervise selected CASPs operating across at least six EU member states. The selection will prioritize entities with significant operational footprints, such as those handling over €50 million in transactions or serving 20,000+ customers in a single jurisdiction.
Mandatory KYC and Broader Enforcement
In line with the AMLR, all crypto transactions exceeding €1,000 ($1,100) will require mandatory customer due diligence (CDD) procedures. CASPs regulated under MiCA will need to review and possibly overhaul their internal compliance systems well ahead of the rollout, as implementation guidelines and delegated acts will follow through the European Banking Authority.
This regulatory crackdown marks a significant escalation in the EU’s oversight of digital assets, expanding on previous frameworks like MiCA, and is likely to have a far-reaching impact on privacy-oriented crypto projects and decentralized platforms across the bloc.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/eu-could-ban-anonymous-crypto-and-privacy-coins-under-new-aml-rules-by-2027/