EU to ban privacy tokens by 2027

The European Union has announced a ban on privacy tokens across its territory starting from 2027, as part of new anti-money laundering (AML) regulations. The ban will affect cryptocurrencies like Monero and Zcash, as well as anonymous crypto wallets.

Anonymity Under Prohibition

The new rules are outlined in Article 79 of the Anti-Money Laundering Regulation (AMLR), published by the European Crypto Initiative (EUCI). According to the document, financial service providers — including exchanges, banks, and payment platforms — will be prohibited from servicing anonymous accounts or handling assets that conceal users’ identities. No exceptions will be made for privacy-focused tokens.

The ban is part of a broader reform package that also applies to bank accounts, safety deposit boxes, and crypto-assets with anonymizing features.

AMLA to Oversee Major Crypto Players

According to Senior Policy Advisor at EUCI, the three key legal frameworks — AMLR, AMLD, and AMLAR — have already been finalized: «Only the fine print remains.»

Starting in 2027, the Anti-Money Laundering Authority (AMLA) will gain direct supervisory authority over crypto platforms operating in six or more EU countries. The regulator will select 40 companies — at least one from each member state.

Selection criteria include:

• a minimum of 20,000 clients in any single country;
• annual turnover exceeding €50 million.

In addition, mandatory identity verification will be required for transactions starting from €1,000.