. Privacy coins and anonymous crypto wallets might soon become history in the European Union.

As part of a sweeping overhaul to tighten anti-money laundering rules, the EU has announced plans to ban both by July 1, 2027.

The European Union is setting the stage for a future where privacy coins like Monero and anonymous crypto wallets will be a thing of the past. As part of a broader move to adjust anti-money laundering rules, the EU plans to ban both by July 1, 2027.

The message is simple: crypto can stay, but it will play by the same rules as the rest of the financial system.

This isn’t the first time rumors of a privacy coins EU ban have swirled. But these plans are now part of the updated Anti-Money Laundering Regulation, known as AMLR, which has implications for decentralized finance and the broader crypto landscape.

What the Ban on Anonymous Crypto Accounts Encompasses

The proposal isn’t about a light tap on the wrist. It would completely eliminate anonymous crypto accounts throughout the EU. This would prevent crypto service providers, exchanges, and even financial institutions from offering services without collecting customer identification.

If you’re a fan of privacy-focused cryptocurrencies like Monero (XMR), Zcash (ZEC), or Dash, get ready for a reality check. The EU is specifically targeting these coins, stating that they make it too easy to conceal transactions and move illicit money undetected.

Additionally, the regulation enforces stricter measures on crypto transfers. For any transaction exceeding 1,000 euros, the identity of both the sender and receiver will need to be verified, aligning crypto rules more closely with traditional banking.

Which Body Will Be Monitoring the New Rules?

To ensure that the new rules aren’t just written in a vacuum, the EU is establishing a new agency called the Anti-Money Laundering Authority, or AMLA. This body will directly supervise up to 40 crypto asset service providers, spanning at least six EU countries.

These companies must have either over 20,000 users or handle more than 50 million euros in annual transactions to fall under AMLA’s radar.

The aim is to prevent a patchwork of regulations among member states and deter shady actors from shifting operations across borders to find the weakest oversight.

A Closer Look at the Implications

Many have voiced criticism of the move, arguing that banning privacy coins and anonymous wallets is an overly harsh approach. It could hinder innovation and erode personal privacy, as these tools are also utilized by activists, journalists, and individuals to maintain financial privacy in an increasingly digital age.

However, regulators maintain that this step is crucial to deter criminals from exploiting crypto for money laundering activities. Moreover, with global pressure mounting to integrate crypto into the existing financial regulations, the EU is positioning itself as a leader in enforcement.

What Does This Mean for the Future of Privacy Coins in the UK?

The EU’s 2027 deadline will necessitate significant adjustments in how crypto operates within its borders. Service providers will need to develop robust “know your customer” systems and readjust their approach to privacy tools.

While it remains to be seen whether other regions will follow suit, one thing is clear: Europe is drawing the curtain on the days of anonymous crypto.