The European Union has approved a new set of Anti-Money Laundering (AML) rules that will ban anonymous cryptocurrency accounts and privacy-focused digital coins such as Monero and Zcash. These regulations are set to take effect in 2027 and will apply to all credit institutions, financial institutions, and crypto-asset service providers operating within the EU. The rules aim to curb illegal activities such as money laundering and terrorist financing, which regulators believe are often facilitated by untraceable crypto transactions.
The new Anti-Money Laundering Regulation (AMLR) forms part of a broader legislative framework that includes the AML Directive (AMLD) and the AML Authority Regulation (AMLAR). These three sets of rules are intended to tighten control over the financial system and reduce the risk of criminal misuse of digital assets. According to Article 79 of the AMLR, it will be unlawful for service providers to maintain anonymous accounts or allow the use of cryptocurrencies that are designed to obscure transaction histories. The rule will also cover other financial instruments like anonymous passbooks, safe-deposit boxes, and bank accounts that enable concealment of identity or funds.
Privacy coins, which use advanced cryptographic methods to hide user identities and transaction details, are a key focus of this new law. These coins have grown popular among users who prefer complete financial privacy, but authorities say this feature makes them appealing to criminals. The EU is now mandating that all crypto-asset accounts and transactions must comply with transparency standards. This will effectively bar the use of tokens that do not allow transaction tracking.
The implementation of these rules will include close monitoring of crypto service providers operating across member states. Starting in July 2027, the EU’s Anti-Money Laundering Authority (AMLA) will select around 40 entities for direct supervision. These firms must have a substantial presence in at least six member states and meet certain thresholds, such as having over 20,000 customers in a host country or facilitating transactions worth more than €50 million. This move aims to bring consistency in enforcement across the EU while focusing on firms with large operations and cross-border activities.
In addition to banning anonymous accounts, the regulation requires service providers to carry out mandatory identity checks on users for all transactions above €1,000. The rule is expected to tighten compliance across the industry and require crypto firms to adapt their internal systems and policies. While some details of implementation are still under review, the main structure of the regulation is confirmed. These remaining details will be outlined through delegated and implementing acts, which are expected to be handled by the European Banking Authority in the coming years.
This regulatory push is part of the EU’s broader effort to bring more accountability to the fast-growing crypto sector. It reflects increasing concerns among lawmakers about the use of digital currencies for unlawful purposes and the need to align crypto services with existing financial rules. Privacy advocates may argue that the new restrictions undermine personal freedoms, but EU officials maintain that public safety and financial integrity must take priority.
