European Union Plans Privacy Token Ban—What It Means for Crypto in 2027
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Under Europe’s AMLR, CASPs, banks, and financial institutions will be strictly prohibited from facilitating transactions involving anonymity-enhancing crypto coins or accounts. Centralized crypto platforms under the EU’s Markets in Crypto-Assets Regulation (MiCA) must align their policies with these new rules, which include mandatory identity checks. Starting in 2027, the European Union is poised to enforce sweeping anti-money laundering measures that, essentially, will ban privacy-oriented cryptocurrency and anonymous crypto accounts. These are part of the forthcoming EU AMLR, which will be the essence of the new EU financial transparency regime. EU To Ban Privacy Crypto Amid AML Push With a new regulatory structure, crypto asset providers (CASPs), banks and other financial institutions will not be allowed to facilitate transactions involving privacy-enhancing digital assets. These include cryptocurrencies such as Monero (XMR), Zcash (ZEC), and others. Also, CASPs will be barred from operating anonymous accounts. According to the AML Handbook released by the European Crypto Initiative (EUCI), “Article 79 of the AMLR establishes strict prohibitions on anonymous accounts […]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts.” This includes not only accounts but also any tools or platforms enabling transaction anonymisation. It is the first part of a wider legislative trio comprising the Anti-Money Laundering Directive (AMLD), the Anti-Money Laundering Authority Regulation (AMLAR), and the Anti-Money Laundering Regulation (AMLR) as part of efforts to strengthen the EU’s financial surveillance capacity both in the traditional and digital environment, as reported in our last news story. Targeted among the assets are “crypto-asset accounts allowing anonymisation of transactions” and “accounts using anonymity-enhancing coins.” The broad legislation has been drawn up, but more detailed aspects of implementation are still being worked out. The details of these will be defined by delegated and implementing acts and to a large extent through the…
Filed under: News - @ May 3, 2025 3:28 am