Privacy coins like Monero and Zcash face extinction in Europe as regulators push for full transparency across the crypto ecosystem.
Key Highlights:
The European Union will prohibit anonymous crypto accounts and privacy-focused coins by 2027.
The AML Regulation (AMLR) will require all crypto service providers to implement full identity checks and prohibit anonymizing technologies.
Yello ParadiseSquad, the European Union has dropped the hammer. Starting in 2027, anonymous crypto accounts and privacy coins like Monero and Zcash will be outright banned, as part of the bloc’s new Anti-Money Laundering Regulation (AMLR).
This marks one of the most aggressive regulatory pivots in crypto history and signals a clear shift in how the EU wants digital finance to function: traceable, compliant, and tightly monitored.
What the AMLR Really Means
Under Article 79 of the AMLR, all forms of anonymous accounts will be prohibited, covering not just crypto wallets but also bank accounts, savings books, and safety deposit boxes.
Any crypto service provider (CASP) that enables anonymity, either by supporting privacy coins or through obfuscation tools—will be considered non-compliant. Coins like Monero and Zcash, which use advanced privacy features, are directly in the crosshairs and will be banned from circulation and custody within the EU.
The regulation leaves no room for interpretation: crypto anonymity is dead in the European market.
Institutions Must Prepare Now
The European Banking Authority (EBA) will handle the technical and operational implementation of the rules, which are already defined in principle but will be refined through delegated acts. According to EUCI policy officer Vyara Savova, regulated CASPs under MiCA must already begin restructuring internal compliance processes, including enhanced KYC systems and wallet screening mechanisms.
Starting July 2027, a new regulatory body—the Anti-Money Laundering Authority (AMLA)—will directly supervise 40 major crypto firms operating across multiple EU states. To be eligible for oversight, a firm must serve at least 20,000 EU residents in a single country and move more than 50 million euros in transaction volume. These thresholds ensure that only the most impactful platforms fall under immediate scrutiny.
Due Diligence Just Got Stricter
Every crypto transaction above 1,000 euros will require enhanced due diligence under the AMLR. This includes strict identification of both the sender and recipient and verification of the source of funds. The new framework forces CASPs to implement more invasive transaction monitoring, eliminating any remaining pathways for pseudonymous financial flows.
Implications: A Safer Market or a Freedom Sacrifice?
The EU’s move is part of its long-term push to regulate crypto in a manner comparable to traditional finance. Following the MiCA framework, which harmonized how assets are issued and traded, AMLR takes aim at transaction transparency and eliminates privacy as a design goal.
Supporters argue this will build institutional trust, reduce fraud, and make Europe a secure environment for institutional capital and digital innovation. Critics warn it threatens financial privacy, freedom of expression, and user sovereignty, especially for communities that rely on privacy tech for political or social protection.
The End of Privacy Coins in Europe?
The biggest losers here are privacy coins. Once a key niche for users who prized transaction confidentiality, these coins will be delisted, deplatformed, and blocked from institutional custody across the continent. While enforcement details remain to be seen, the writing is on the wall: by 2027, Europe will not tolerate any form of digital anonymity.
This is a moment of reckoning for crypto. CASPs must invest heavily in compliance infrastructure, or risk being pushed out. DeFi protocols and privacy-centric blockchains will either adapt or disappear from the EU landscape entirely.
We’ll unpack how this move might push European liquidity into offshore or on-chain solutions during this week’s YouTube stream, and ParadiseFamilyVIP members will receive our full compliance impact briefing for token positioning, privacy sector exposure, and smart contract audits.
Join MCP News Private for just $3/month, get the full breakdown daily, and prepare yourself for the most regulatory-heavy crypto cycle yet.
Because the future of crypto in Europe is crystal clear—and privacy didn’t make the cut.
