EU Bans Anonymous Crypto Accounts, Privacy Coins by 2027

The European Union has enacted a comprehensive anti-money laundering regulation (AMLR) that will significantly alter the cryptocurrency landscape starting July 1, 2027. This new law aims to enhance transparency and accountability by prohibiting anonymous crypto accounts and privacy-focused coins such as Monero, Zcash, and Dash. The regulation mandates that any crypto transaction exceeding €1,000 must undergo full identity verification by the platforms involved.

Under the AMLR, all crypto service providers, including banks, apps, and exchanges, will be required to conduct full Know Your Customer (KYC) checks. This means that users will need to provide comprehensive identification and verification details to continue using these services. The regulation also includes a direct ban on tokens that enhance privacy and obscure transactions, making it illegal for crypto platforms to list or support privacy coins.

To ensure compliance with these new rules, the EU is establishing a new authority called the Anti-Money Laundering Authority (AMLA). Starting in 2027, AMLA will oversee larger crypto platforms operating in at least six EU countries. Companies handling over €50 million in transactions or serving more than 20,000 customers in a single country will fall under this direct monitoring. Around 40 major players are expected to be selected for this oversight.

For crypto users, this regulatory change means that platforms offering anonymous services or privacy coins will need to adapt. Over the next two years, crypto firms will begin implementing changes to comply with these new rules. Users holding privacy coins such as Monero, Zcash, and Dash will need to explore alternative solutions or adapt to the new regulatory environment before the ban takes effect in July 2027.

This move by the EU is part of a broader effort to align the crypto industry with stringent AML standards, effectively clamping down on unregulated spaces within the sector. The ban on privacy coins and anonymous accounts is expected to have far-reaching implications for both users and service providers, as it will require crypto businesses to adopt more stringent identification and verification processes. The EU's decision signals a significant policy shift, potentially forcing privacy coin users to seek alternative solutions or adapt to the new regulatory landscape.