By 2027, all EU member states will ban anonymous crypto transactions. This significant move is part of the Anti-Money Laundering (AML) reform that targets both crypto service providers and privacy coins like Monero ($XMR) and Zcash ($ZEC).
The European Union is tightening its grip on cryptocurrency. So, what’s changing—and why should you care about the EU’s anonymous crypto transactions ban in 2027?
No More Anonymous Accounts or Privacy Coins
According to the new Anti-Money Laundering Regulation (AMLR), crypto companies and banks cannot provide or enable anonymous crypto transactions. That includes any accounts or tokens designed to hide the identity of users or the source of funds. In plain terms, if a token hides transaction details so well that regulators can’t trace them, the EU will ban it. Widespread gains in privacy coins like Monero and Zcash will get it hot if this ban commences.
Source: X
Article 79 of the AMLR states that banks, financial institutions, and crypto-asset service providers (CASPs) can no longer maintain anonymous accounts or support privacy-focused tokens. This also covers Tradfi tools like anonymous bank accounts and even physical safe deposit boxes used for shady dealings. The EU is actively shutting down every backdoor that could be effective in money laundering or illegal activity.
Direct Supervision for Big Crypto Platforms
The EU also increases the heat on crypto companies operating across many countries. Starting July 1, 2027, the new European Anti-Money Laundering Authority (AMLA) will begin supervising large crypto firms directly.
1/ Yesterday was a prime example of why crypto Twitter (and often crypto media) should not be trusted when it comes to crypto policy. Let’s debunk claims that the EU is banning anonymous crypto transactions or self-custodial wallets.
Here is what’s actually in the EU Anti Money… pic.twitter.com/dsNZQzl9Mx
— Patrick Hansen (@paddi_hansen) March 24, 2024
The first batch will include 40 companies, at least one from each member state. To qualify, a company must have either,
- Over 20,000 users in a specific EU country.
- More than €50 million (about $56M) in total transaction volume.
CASPs must perform customer due diligence for transactions over €1,000 (around $1,100). No more skipping the ID check for “small” transfers.
To say that the EU will totally ban privacy tokens etc, citing AMLR, is false.
We’re not talking about banning the detention of privacy tokens by any means, etc. The ban is mainly imposed on regulated actors (notably the new CASPs under MiCA).
Recital 160 of AMLR clearly states… https://t.co/ALFYihCUge
— Enguerrand Denoual (@EdDenoual) May 3, 2025
Conclusion
The EU is making it clear: there’s no more room for anonymous crypto transactions in its financial system. While the details are still in the works, the regulations are already in place. Crypto service providers will make changes, particularly those dealing with privacy coins or cross-border transactions.
For regular users, this is a game-changer. The phase of complete anonymity for EU crypto is officially counting down.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
