#EUPrivacyCoinBan

The European Union’s Anti-Money Laundering Regulation (AMLR), effective July 1, 2027, bans anonymous crypto accounts and privacy coins like Monero, Zcash, and Dash to combat money laundering and illicit activities. The regulation prohibits financial institutions and Crypto-Asset Service Providers (CASPs) from handling anonymity-enhancing coins and mandates KYC verification for transactions over €1,000. The Anti-Money Laundering Authority (AMLA) will oversee major CASPs, with a centralized crypto account register planned by 2029. The announcement on May 2, 2025, sparked an 8.1% drop in Monero’s price and increased market volatility, with traders shifting to decentralized exchanges or crypto-friendly regions like Dubai. While personal possession of privacy coins remains legal, centralized exchanges may delist them, reducing liquidity. Critics argue the ban threatens financial privacy and innovation, potentially driving decentralized finance underground. The EU aims to lead in regulated crypto markets, but the move raises concerns about surveillance and centralized control, especially with the rise of CBDCs. Traders are advised to diversify or use non-custodial wallets, while CASPs face stricter compliance requirements. The ban’s global impact remains uncertain, but it signals a pivotal shift in crypto regulation.