₿- The EU will ban anonymous crypto accounts and privacy coins starting in 2027 under new AML rules.
₿- Stricter KYC checks and transaction monitoring will be enforced, requiring identity verification for crypto transfers over €1,000.
₿- The crypto community warns that these regulations threaten financial privacy and could stifle innovation within the EU.
The European Union is taking a major regulatory step that will impact the crypto industry across the continent. Starting in 2027, anonymous crypto accounts and privacy coins like Monero (XMR) and Zcash (ZEC) will be banned under new Anti-Money Laundering (AML) rules. While regulators claim this move is aimed at curbing illicit finance, it raises serious concerns about privacy, decentralisation, and the future of crypto innovation in the EU.
What the New EU AML Regulations Involve
The regulation, known as the Anti-Money Laundering Regulation (AMLR), will require crypto asset service providers (CASPs), banks, and financial institutions to eliminate all anonymous accounts. They will also be prohibited from handling privacy-enhancing cryptocurrencies. These rules are part of a broader AML package that aligns with the EU’s effort to gain more oversight over the digital asset ecosystem.
Stricter KYC Rules and Transaction Monitoring
In addition to banning privacy coins, the EU will also enforce stricter customer due diligence requirements. All crypto transactions above €1,000 must be verified with full identity checks. It essentially means that peer-to-peer crypto privacy within regulated services will become a thing of the past.
New Authority to Oversee Major Crypto Service Providers
A new watchdog, the Anti-Money Laundering Authority (AMLA), will directly supervise CASPs that operate in six or more member states. To qualify for supervision, crypto firms must have at least 20,000 customers or a transaction volume exceeding €50 million. The move aims to bring large players under tighter control, especially those with cross-border influence.
Crypto Community Pushes Back on Privacy Erosion
Crypto advocates argue that while transparency is important, banning privacy coins and enforcing blanket surveillance could drive innovation outside the EU. Privacy is not a crime, and many use privacy coins for legitimate reasons, including protection from censorship, data abuse, and oppressive regimes.
The Road Ahead for Crypto Businesses in the EU
As implementation details are still being finalised, crypto businesses have time to adjust, but the writing is on the wall. If EU-based projects want to stay compliant, they must rethink how they handle privacy, data collection, and cross-border transactions.
While the EU says this is about fighting money laundering, many in the crypto community see it as a step toward a surveillance-heavy financial future that could restrict the freedoms blockchain was built to protect.
Stay informed,
Rodcas Consulting Group