France Bans Privacy Coins, Targets Monero, Tornado Cash
1min read In a significant move that is expected to have far-reaching implications for the cryptocurrency ecosystem, the French government has officially declared privacy-focused cryptocurrencies and anonymizing platforms illegal within its borders. This decision specifically targets tokens such as Monero ($XMR) and services like Tornado Cash, reflecting France’s increasingly stringent regulatory approach to digital assets.
Privacy coins have long been a contentious issue for regulators due to their ability to conceal transaction details and user identities. These features, while appealing to privacy advocates, raise significant concerns for law enforcement and financial oversight bodies. France’s latest decision aims to address these concerns by outlawing the use, trade, and facilitation of cryptocurrencies and platforms designed to obscure financial transactions.
Monero, one of the most well-known privacy coins, employs ring signatures and stealth addresses to hide the origins, amounts, and recipients of transactions. Tornado Cash, an Ethereum-based protocol, allows users to mix tokens to break transactional links, further enhancing anonymity. Both have faced intense scrutiny in recent years, and France’s move aligns with a growing global sentiment that such privacy-enabling tools conflict with anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.
The French government’s decision is driven by a desire to comply more closely with the Financial Action task Force (FATF) guidelines, which advocate for strict oversight of virtual assets that impede traceability. French lawmakers argue that total anonymity in financial transactions poses an unmanageable risk in combating illicit finance, tax evasion, and cybercrime.
The ban positions France as one of the most restrictive jurisdictions in Europe regarding privacy-enhancing crypto technologies. This could pressure other EU member states to adopt similar policies as the bloc finalizes its MiCA (Markets in Crypto-Assets) regulatory framework. This development could significantly hinder the adoption and utility of privacy coins within regulated financial environments.
France’s prohibition follows earlier actions by U.S. authorities, who sanctioned Tornado Cash in 2022 over allegations that it had facilitated billions in money laundering activities, including for state-sponsored hacking groups. With France now joining the list of nations outlawing such platforms, a broader international crackdown could be on the horizon.
For privacy-focused crypto developers and advocates, the challenge ahead is navigating a world that is increasingly hostile to anonymity. While privacy remains a fundamental principle for many in the blockchain space, regulatory tolerance for untraceable digital transactions is rapidly diminishing.
As noted in the report, the ban is now official. For privacy coins and protocols, the clock may be ticking—not just in France, but globally—as regulators intensify efforts to bring every corner of the digital asset landscape under watchful scrutiny.
