The EU is planning to ban anonymous crypto accounts and privacy coins!

The European Union has come up with a new plan for crypto. As part of this plan, it has taken a plan to implement a new comprehensive anti-money laundering (AML) regulation within the next two years, by 2027. They plan to ban all anonymous cryptocurrency accounts and privacy coins in the European Union. One thing we all know now is that money laundering is a very serious crime. Currently, almost all countries are making different laws and taking different plans to control this money laundering.

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The European Union’s move is part of the Anti-Money Laundering Regulation (AMLR). As part of the plans they are currently undertaking, they will prohibit sites such as credit institutions, financial institutions and crypto-asset service providers (CASPs) from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies. The laws they are currently implementing are clearly spelled out in a section of their regulation. It prohibits maintaining anonymous accounts across a range of financial instruments, including crypto-asset accounts that enable transaction anonymization and accounts using anonymity-enhanced coins.

The plans they are currently implementing are not limited to crypto alone. In addition to crypto, the current ban extends beyond crypto to close anonymity gaps in financial transactions in bank and payment accounts, passbooks, and safe-deposit boxes. While the broad framework is being finalised, detailed implementation will be carried out through so-called implementing and delegated acts, primarily overseen by the European Banking Authority (EBA). The European Crypto Initiative (EUCI) is actively providing feedback during the public consultation to finalise these details.

Starting from July 1, 2027, the EU Anti-Money Laundering Authority (AMLA) will directly supervise CASPs operating in at least six Member States, selecting around 40 entities based on thresholds such as at least 20,000 resident clients or transaction volumes exceeding €50 million. Mandatory customer due diligence will apply to crypto transactions over €1,000 to ensure transparency of user identities. The aim of this regulatory change is to increase financial transparency and combat the illicit use of digital assets by eliminating anonymity in crypto transactions within the EU.