European Union to Enforce Ban on Privacy Coins and Anonymous Crypto Accounts Starting in 2027

The European Union is preparing to enforce strict anti-money laundering (AML) rules targeting privacy-focused cryptocurrencies and anonymous wallets. Beginning in 2027, under the new Anti-Money Laundering Regulation (AMLR), crypto service providers will be prohibited from supporting anonymous accounts or handling privacy coins.

According to the EU Crypto Initiative (EUCI), Article 79 of AMLR clearly bans the use and maintenance of anonymous accounts. This includes anonymous crypto wallets, privacy-enhancing coins, and services that obscure transaction details.

Financial institutions, credit institutions, and crypto asset service providers (CASPs) will face direct regulatory oversight. Notably, any crypto transaction over €1,000 will require mandatory identity verification, adding a new layer of transparency to EU crypto operations.

Under the updated framework, CASPs operating in at least six EU countries will be subject to direct supervision by the European Anti-Money Laundering Authority (AMLA). Starting July 1, 2027, AMLA will select at least 40 companies for monitoring based on criteria such as having more than 20,000 customers in a host country or exceeding €50 million in total transaction volume.

This initiative builds upon earlier regulations like MiCA, tightening the EU's grip on crypto service providers and setting the tone for future policy. Regulatory experts suggest centralized crypto companies must now redesign their internal processes to remain compliant under this stricter legal environment.