Strict Regulations on Cryptocurrency by the EU: Private Cryptocurrency and Anonymous Accounts Are Prohibited

Europe is implementing strict anti-money laundering standards, banning private currencies and anonymous cryptocurrency account activities starting from July 1, 2027. Cryptocurrency service providers (CASP), including exchanges and financial institutions, must ensure the collection of customer identification data (KYC) for all users or cease providing such services in the EU.

Private Money is Prohibited, Transaction Supervision is Tighter The establishment of new security rules aimed at limiting transactions related to the cryptocurrencies Monero (XMR), Zcash (ZEC), and Dash. The EU will ban all cryptocurrencies that aim to provide anonymity for transactions operating within its borders. Regulators have stated that these coins allow users to conduct hidden criminal activities and money laundering schemes easily. The new legal framework imposes strict management requirements, where transactions exceeding 1,000 euros will require full identity verification of the participants, including both the sender and the receiver. By implementing this measure, traditional banking standards can be better applied to cryptocurrency transaction processes. AMLA: New Electronic Money Regulatory Authority To implement these changes, the EU established the Anti-Money Laundering Authority (AMLA) as a new regulatory agency to oversee these changes. AMLA is responsible for overseeing around 40 regulated cryptocurrency service providers working with six or more EU member states. According to the legal authority of AMLA, these companies must maintain 20,000 registered users or exceed 50 million euros in annual transactions. EU Leads the Crackdown on Anonymous Cryptocurrency The EU has implemented a ban on anonymous accounts and private cryptocurrencies as members want to prevent cryptocurrencies from protecting illegal activities. These regulations will now require cryptocurrency service providers to rebuild their systems while implementing strict customer identity verification requirements (KYC) to comply.