EU to ban privacy cryptocurrencies and anonymous accounts by 2027 under new AML rules
05/10/2025 / By Laura Harris
- By 2027, the European Union (EU) will prohibit crypto-asset service providers (CASPs) and financial institutions from handling privacy-focused cryptocurrencies (e.g., Monero, Zcash) or anonymous accounts to enforce full transaction transparency.
- Large crypto firms operating in six or more EU states will face direct supervision by the European Anti-Money Laundering Authority (AMLA), streamlining compliance enforcement.
- Mandatory customer due diligence (CDD) for transactions over €1,000 ($1,100) and stricter reporting obligations for firms with 20,000+ users or €50 million ($57 million) in transactions per member state.
- Critics, like Didi Rankovic, argue the rules disproportionately target DeFi despite crypto-related money laundering being minimal compared to traditional finance, questioning if the crackdown is more about control than crime prevention.
- The European Banking Authority (EBA) is finalizing technical details, leaving little room for adjustments before enforcement begins in mid-2027.
The European Union is set to enforce stringent new Anti-Money Laundering (AML) rules that will ban privacy-focused cryptocurrencies and anonymous crypto accounts by 2027 “to curb illicit financial activities.”
The Anti-Money Laundering Regulation (AMLR), part of a broader regulatory package including the Anti-Money Laundering Directive (AMLD) and Anti-Money Laundering Authority Regulation (AMLAR), explicitly prohibits crypto-asset service providers (CASPs), banks and financial institutions from handling anonymous accounts or privacy coins that obscure transaction details. (Related: Brighteon’s crypto tipping system for content creators now also supports privacy coins BEAM and FIRO.)
AMLR introduces several key provisions to strengthen oversight of cryptocurrencies and combat illicit financial activities. Article 79 explicitly bans financial institutions and crypto firms from maintaining anonymous accounts, ensuring full transparency in user identification. Additionally, services dealing with privacy-focused cryptocurrencies like Monero (XMR) and Zcash (ZEC), which enhance anonymity, will no longer be permitted under the new rules. Large crypto firms operating in six or more EU member states will face direct supervision by the European Anti-Money Laundering Authority (AMLA), centralizing enforcement efforts.
According to the European Crypto Initiative (EUCI), which recently published an AML Handbook, these rules leave little room for modification. The European Banking Authority (EBA) will oversee implementation, with only minor adjustments possible before finalization.
By July 1, 2027, the EU will enforce direct supervision on 40 selected firms, at least one per member state, that meet strict criteria: 20,000+ customers in a single EU country, or transaction volumes exceeding €50 million ($56 million). Additionally, customer due diligence (CDD) will be mandatory for all transactions above €1,000 ($1,100), reinforcing transparency requirements.
With the EBA finalizing technical details, CASPs must prepare for stricter reporting and compliance obligations.
Rankovic sparks debate over motives of new AML rules
The move, which aims to curb illicit financial activities, has sparked concerns among privacy advocates and crypto industry players.
In an article written by Didi Rankovic for Reclaim the Net, he claimed that the EU’s prevailing policy stance suggests that Decentralized Finance (DeFi) platforms have become a breeding ground for criminal activity, particularly money laundering as crypto is converted into fiat currency.
However, Rankovic also argued this concern appears disproportionate, given that the actual scale of crypto-related money laundering remains negligible compared to traditional fiat systems – not to mention the far greater effort and coordination required by bad actors to exploit DeFi.
“The overarching thinking behind the policy here is that Decentralized Finance (DeFi) platforms have proven to be fertile ground for criminals – and, specifically, money laundering (from crypto to fiat money),” Rankovic wrote. “But this is happening even though the actual level of money laundering via crypto compared to fiat remains negligible, not to mention requiring significantly more involvement from bad actors.”
In other words, the disproportionate focus ignores the far greater scale of illicit activity in traditional finance, even though regulators target DeFi over money-laundering fears, raising questions about whether the crackdown is truly about crime or preserving centralized control.
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Watch this clip from “MoneroTalk” as Mike Adams, the Health Ranger, joins host Douglas Tuman to discuss privacy crypto.
This video is from the Health Ranger Report channel on Brighteon.com.
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