EU to Ban Privacy Coins and Anonymous Crypto by 2027: Report

The European Union (EU) will ban privacy coins and anonymous crypto accounts by July 2027. Privacy coins like Monero and Zcash will be banned to curb illegal cryptocurrency use. New EU AML rules require identity checks for crypto transfers over 1,000 euros. Europe is adopting stringent anti-money laundering standards that prohibit privacy coins and anonymous crypto account operations starting from July 1, 2027. Crypto service providers (CASPs) including exchanges and financial institutions must ensure they collect customer identification (KYC) data for all users or cease offering those services within the EU. Privacy Coins Banned, Transaction Monitoring Tightened The establishment of new privacy rules aims to restrict transactions involving Monero (XMR), Zcash (ZEC), and Dash cryptocurrency. The EU will ban all cryptocurrencies that aim to provide transaction anonymity from operating within its borders. The regulators claim that these coins enable users to execute hidden criminal operations and money laundering schemes easily. The new regulatory framework imposes strong management requirements, where transactions exceeding 1,000 euros will need complete participants’ identity verification, including senders and receivers. By adopting this measure traditional banking standards can better apply to crypto transaction processes. Related: OKX Wins Major European MiFID II License: To Start Regulated Crypto Derivatives Trading AMLA: New Crypto Regulation Authority To enforce these changes, the EU establishes the Anti-Money Laundering Authority (AMLA) as a new enforcement body to regulate these changes. AMLA holds oversight responsibilities for approximately 40 managed crypto service providers that work with six or more EU member states. Under AMLA’s legal authority, these companies must maintain 20,000 registered users or exceed 50 million euros in yearly transactions. EU Takes Lead on Crypto Anonymity Crackdown The EU adopted its privacy coin and account anonymity prohibition because its members want to stop crypto from offering protection for unlawful operations. These regulations will now force crypto service providers to rebuild their systems while enforcing strict know-your-customer (KYC) requirements for compliance purposes. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company. Source: https://coinedition.com/eus-strict-new-crypto-regulations-privacy-coins-anonymous-accounts-banned-by-2027/