The European Union has taken a significant step in its fight against money laundering by implementing a new regulation that targets privacy-focused cryptocurrencies. This move, which will come into effect in 2027, aims to tighten the oversight of digital transactions across the EU. The source reports that the regulation is expected to enhance transparency and accountability in the cryptocurrency market.
New Anti-Money Laundering Regulation
Under the new Anti-Money Laundering Regulation, cryptocurrencies such as Monero, Zcash, and Dash will be banned due to their privacy features. Starting July 1, 2027, any cryptocurrency transaction exceeding 1,000 euros will necessitate mandatory identification verification, a measure designed to enhance transparency and accountability in the crypto space.
Impact on Exchanges and Wallet Providers
The regulation is expected to impose higher compliance costs on exchanges and wallet providers, as they will need to implement robust identity verification processes. Additionally, the ban on privacy coins may lead to decreased liquidity and trading volumes, as users may seek alternatives that do not require such stringent measures.
Support from Regulatory Bodies
This initiative was spearheaded by the European Parliament and Council, with backing from the Anti-Money Laundering Authority (AMLA) and the European Banking Authority.
On November 10, 2025, the US Senate passed a Continuing Appropriations bill to prevent a government shutdown, contrasting with the EU's recent regulatory measures on cryptocurrencies. For more details, see read more.
