European Union Officially Signs Regulation Banning Anonymous Crypto Accounts and Privacy Coins Such as Monero (XMR), Zcash (ZEC), and Dash

The European Union has signed a comprehensive regulation that will ban anonymous crypto accounts and privacy-focused coins such as Monero ($XMR), Zcash ($ZEC ), and Dash

The European Union has now signed a comprehensive regulation that will ban anonymous crypto accounts and privacy-focused coins such as Monero (XMR), Zcash (ZEC ), and Dash starting from July 1, 2027.

The European Union has long been working on the Anti-Money Laundering Regulation (AMLR), and now it is officially coming into effect. The new regulations completely prevent financial institutions and cryptocurrency service providers from opening anonymous accounts or using privacy-enhancing cryptocurrencies. In this context, Monero (XMR), Zcash (ZEC), and Dash, which are largely used for privacy in the crypto world, will not be permitted to operate within EU borders.

AMLR, which will come into effect on July 1, 2024, will require identity verification for cryptocurrency transactions exceeding 1,000 euros. This marks a crucial change, especially for investors and users who benefit from the anonymity feature of cryptocurrencies. Moreover, the European Union is introducing a new oversight body to closely monitor the implementation of these regulations: the European Anti-Money Laundering Authority (AMLA).

Increased Oversight

As part of the European Union's new regulations, cryptocurrency service providers operating in at least six different regions in member countries will directly fall under AMLA's supervision.

Platforms that will be subject to AMLA's oversight will be selected from those with high transaction volumes and operating in different EU countries. For a platform to be placed directly under AMLA oversight, it must reach a minimum of 20,000 customers or have total transaction volumes of at least 50 million euros.

The European Union's firm step will also bring significant changes, especially for centralized exchanges and service providers.