The European Union is set to outlaw anonymous crypto accounts and privacy-focused tokens like Monero (XMR) and Zcash (ZEC) by 2027, as part of a sweeping crackdown on illicit finance under its new Anti-Money Laundering Regulation (AMLR).
Announced as a cornerstone of the EU’s broader anti-money laundering overhaul, the AMLR will directly target financial institutions, credit entities, and crypto asset service providers (CASPs), banning the use and custody of any assets or accounts that obscure user identity or transaction data.
According to Article 79 of the AMLR, anonymous crypto accounts and privacy-enhancing coins will no longer be permissible within the EU financial system. The legislation applies not only to bank accounts and payment services but also extends to digital wallets and decentralized services offering enhanced transaction privacy.
The European Crypto Initiative (EUCI), which published an explanatory AML Handbook, highlighted that crypto platforms falling under the scope of MiCA (Markets in Crypto-Assets Regulation) must align their internal policies with the upcoming rules. Senior EUCI policy lead Vyara Savova confirmed that although the regulation’s framework is finalized, specific implementation details—known as “delegated and implementing acts”—are still under review.
“These level-two acts will fill in the operational gaps, and we’re actively providing feedback through public consultations,” Savova said. “But the direction is clear—privacy coins and anonymous accounts are being phased out.”
AMLA to Directly Supervise Key Crypto Firms
In a move to centralize oversight, the new AML Authority (AMLA) will begin supervising selected CASPs across the EU from July 1, 2027. Initially, 40 entities—at least one from each member state—will be placed under direct scrutiny.
Selection criteria will include a minimum customer base of 20,000 within any EU member state or transaction volumes exceeding €50 million ($56 million), ensuring that only firms with significant cross-border activity are monitored.
Additionally, all CASPs will be required to perform mandatory customer due diligence on any transaction exceeding €1,000 ($1,100), a significant tightening of existing compliance requirements.
Privacy in Crypto Under Siege
These new rules effectively signal the end of privacy-preserving crypto tools within the European market. Tokens such as Monero and Zcash—designed specifically to obfuscate sender, receiver, and transaction amounts—will be delisted or unsupported by regulated platforms.
The EU’s actions follow a broader global trend of tightening regulatory grip on the cryptocurrency sector, echoing earlier legislation under MiCA and increasing pressure on platforms to enforce transparency and traceability.
With enforcement less than two years away, crypto firms operating in Europe now face a clear mandate: adapt to full transparency or risk losing access to the market.
