EU plans to enforce full transparency on crypto transactions, targeting senders and receivers.

New AML laws will ban anonymous wallets and privacy coins like Monero and Zcash by 2027.

Europe is aiming for full transparency in crypto transactions, targeting both senders and receivers, according to Eurogroup President Paschal Donohoe.

Speaking at the European Anti-Financial Crime Summit 2025 in Dublin, Donohoe also said that new anti-money laundering (AML) laws will ban anonymous wallets and privacy coins like Monero (XMR) and Zcash (ZEC) by 2027.

He added that the eurozone needs stronger oversight of crypto asset service providers (CASPs) to mitigate risks.

“We need to continue to strengthen the role of the Eurosystem in crypto asset supervision,” Donohoe said.

The EU is planning to extend traditional finance-style oversight to CASPs, such as exchanges and wallets, by applying the same legal class to both types of firms.

“We are working on a legislative reclassification of performance transfer mechanisms,” Donohoe said.

He said that this would enable regulators to collect data on the senders and recipients of funds, which now applies only to CASPs.

“We need to continue to push on crypto transparency issues. We need to ensure that we can coordinate better on this agenda at EU level.”

Donohoe’s comments come as part of a years-long strategy by the EU to tighten its grip on crypto.

The bloc’s AML Authority (AMLA) is being positioned as a central point of contact for the new rules.

“This is a landmark development in our collective efforts to counter financial crime,” Donohoe said.

“Closer cooperation and coordination between us is absolutely critical if we are to stay ahead of the criminals who are becoming more and more sophisticated in the techniques they use.”

The changes follow the introduction of the EU’s new crypto regulation, Markets in Crypto Assets (MiCA), earlier this year and the revised AMLR framework, which was passed in 2023.

The AMLR rules, which will take full effect by July 1, 2027, will ban crypto firms from interacting with anonymous wallets and privacy-focused coins.

EU regulators will also be able to block the IP addresses of non-compliant decentralised exchanges, in one of the most aggressive regulatory crackdowns yet seen on the industry.

However, critics have warned that the rules will be difficult to enforce and could stifle innovation in the Web3 space.

“These rules are being written as if they were for traditional banking, but they don’t translate well to crypto’s decentralised structure,” said Unity Wallet COO James Toledano at the same event.

“They can and will be easily circumvented as self-custodial crypto is truly global.”

But EU officials say that transparency is a priority.

“We must continue to cooperate closely to ensure the efficient implementation of the new anti-money laundering legislation,” said Donohoe.

“We also need to continue working together to counter new and emerging threats, such as cybercrime and ransomware attacks.”