EU Sets Deadline to Ban Anonymous Crypto by 2027

The European Union has announced a regulation set to ban anonymous cryptocurrencies by 2027, as part of wider anti-money laundering measures.

This decision highlights the ongoing global debate over privacy versus regulation in digital currencies, with European markets bracing for changes.

EU Targets Privacy Coins with New AML Measures

The European Union has finalized the Anti-Money Laundering Regulation (AMLR) targeting anonymous crypto assets. Set to be enforced by 2027, this initiative seeks to diminish the anonymity of digital transactions.

Leading the implementation, the European Crypto Initiative and the European Banking Authority support the new legislation that requires regulated entities to avoid offering or facilitating privacy coins like Monero and Zcash. Vyara Savova, Senior Policy Lead at the European Crypto Initiative, stated, “The regulations (the AMLR, AMLD and AMLAR) are final, and what remains is the ‘fine print’ — aka the interpretation of some of the requirements through the so-called implementing and delegated acts. This means that the EUCI is still actively working on these level two acts by providing feedback to the public consultations, as some of the implementation details are yet to be finalized.”

Exchanges to Delist Privacy Coins in EU

The regulations will force EU-based exchanges to delist privacy coins, affecting their trade volumes significantly. This new legislation could shift liquidity and trading activity away from these cryptocurrencies.

Financial institutions must adhere to strict compliance, banning anonymous accounts and requiring identity verification for transactions exceeding €1,000, which could impact user privacy and business practices.

5AMLD Precedents and Market Predictions

Previous regulations such as the 5AMLD had similar objectives but did not ban privacy coins outright. Past responses included exchange delistings in jurisdictions like the UK and South Korea.

Observers predict increased volatility as markets adapt to restrictions on privacy coins. Traders and platforms are advised to prepare for significant operational changes as the regulatory landscape shifts.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.