The European Union has enacted sweeping new crypto regulations under the Anti-Money Laundering Regulation (AMLR), set to take effect on July 1, 2027. These rules will mandate identity verification for all cryptocurrency transactions exceeding €1,000 conducted through exchanges, aiming to align digital asset trading with traditional financial systems and combat money laundering.
The regulations specifically target privacy-focused cryptocurrencies, imposing a complete ban on Monero (XMR), Zcash (ZEC), and Dash (DASH) on EU-based exchanges. This move addresses concerns that these coins' advanced cryptographic features, which obscure transaction details, could facilitate illicit activities. Exchanges must overhaul compliance systems, leading to increased operational costs, while users face stricter monitoring and the loss of access to privacy coin trading.
Vyara Savova, a Senior Policy Expert at the European Crypto Initiative (EUCI), noted, "The EUCI continues to play a role in shaping these final elements by contributing to public consultations." Critics argue the ban might push privacy-conscious users to decentralized or non-EU platforms, potentially creating regulatory gaps. The EU's decision follows global trends but raises questions about financial privacy and innovation in the crypto space.
