Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the news of the European Union confirming they will ban all anonymous cryptocurrency wallets from the 1st of July in 2027.
European Union to BAN Anonymous Wallets on 1 July 2027
The European Union have completed their Anti-Money Laundering Regulations which will make anonymous crypto accounts and privacy‑enhancing coins illegal from 2027. It means the largest Crypto‑Asset Service Providers (CASPs) will be under direct EU supervision. This will begin from the 1st of July 2027 and from then onwards any CASP operating in at least six member states, serving more than 20,000 local customers, or processing over €50 million in transactions will answer to the new Anti‑Money Laundering Authority (AMLA).
It is planned that by 2029 a new centralised and automated register will allow regulators to track crypto‑account holders across the bloc, meaning the end is in sight for untraceable wallets. These rules will force CASPs, credit institutions, and other financial firms to shut every anonymous account, refuse privacy coins, and perform customer due diligence checks on transfers above €1,000. This means the so-called privacy coins, such as Monero and Zcash, will be banned within the European Union.
The decision is part of a broader package of anti-money laundering (AML) measures, aimed at strengthening financial transparency and combating the illicit use of digital assets. Any high-risk transactions which involve self‑hosted wallets will require enhanced due diligence and close what the European union call a regulatory blind spot.
These new rules will follow on from the strict know‑your‑customer playbooks familiar to banks and put a tough level of compliance on cryptocurrency as what is expected from traditional finance. The European Crypto Initiative (EUCI) has released The AML Handbook: A Guide for Crypto Activities, outlining 13 operational pillars to help with the implementation.
Among the assistance within the Handbook there are tips on mandatory KYC/KYB updates, real-time monitoring of self‑hosted wallets, cross‑border risk checks, and data mapping for future registers. It is also stated that over the following two years the European Banking Authority (EBA) will provide further technical details through implementing acts.
Those who are early adopters of the privacy‑preserving tools like zero-knowledge (ZK) proofs may gain a competitive edge by balancing regulatory compliance with user privacy. The platforms which deal in privacy coins will be facing a difficult decision, they can change direction, exclude European Union users, or entirely exit the market. It has also been stated that non-compliance by mid‑2027 could result in enforcement actions, reputational damage, or expulsion from Europe’s crypto market.
The obligations of due diligence within the new regulations means that all transactions above 1,000 will stand out and require more rigorous check on the identity of the clients and the origin of the funds. This is with the aim of preventing suspicious or illegal activities. The adoption of these new measures will mark a radical change for the crypto ecosystem in Europe. It is intended to strengthen the trust of institutional investors and reduces the risk of abuses, but on the other hand it will raise many questions regarding user privacy and financial freedom.
Users have already began to react, with a Reddit thread outlining how some believe it will be impossible to stop crypto and that users may require a VPN to circumnavigate the rules and access the likes of Monero on a DEX.
Others are more clear cut in their views and even explain it as simply as possible - you don't buy Monero to use on a centralised exchange in the first place, so it wont have much impact there. Still, it remains to be seen how this impacts the market overall, as previously seen in the European Union when the likes of Binance were forced to stop making use of USDT.
Have a great day.
Peace. CryptoGod-1.
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