Privacy Coins, Anonymous Accounts Banned by 2027

Europe is adopting stringent anti-money laundering standards that prohibit privacy coins and anonymous crypto account operations starting from July 1, 2027.

Crypto service providers (CASPs) including exchanges and financial institutions must ensure they collect customer identification (KYC) data for all users or cease offering those services within the EU.

Privacy Coins Banned, Transaction Monitoring Tightened

The establishment of new privacy rules aims to restrict transactions involving Monero (XMR), Zcash (ZEC), and Dash cryptocurrency. The EU will ban all cryptocurrencies that aim to provide transaction anonymity from operating within its borders. The regulators claim that these coins enable users to execute hidden criminal operations and money laundering schemes easily.

The new regulatory framework imposes strong management requirements, where transactions exceeding 1,000 euros will need complete participants’ identity verification, including senders and receivers. By adopting this measure traditional banking standards can better apply to crypto transaction processes.

AMLA: New Crypto Regulation Authority

To enforce these changes, the EU establishes the Anti-Money Laundering Authority (AMLA) as a new enforcement body to regulate these changes. AMLA holds oversight responsibilities for approximately 40 managed crypto service providers that work with six or more EU member states.

Under AMLA’s legal authority, these companies must maintain 20,000 registered users or exceed 50 million euros in yearly transactions.

EU Takes Lead on Crypto Anonymity Crackdown

The EU adopted its privacy coin and account anonymity prohibition because its members want to stop crypto from offering protection for unlawful operations.

These regulations will now force crypto service providers to rebuild their systems while enforcing strict know-your-customer (KYC) requirements for compliance purposes.