EU to Ban Anonymous Crypto Accounts and Privacy Coins Under New AML Rules

The European Union (EU) has officially confirmed sweeping anti-money laundering (AML) rules that will outlaw anonymous crypto accounts and privacy-focused coins starting in 2027.

The upcoming changes fall under the Anti-Money Laundering Regulation (AMLR), a legislative package aimed at increasing transparency in the financial system and curbing illicit financial flows.

Under Article 79 of the AMLR, crypto-asset service providers (CASPs), banks, and financial institutions across the EU will not offer services that conceal user identities. This includes banning privacy tokens such as Monero and Zcash, which are designed to obscure transaction details.

Anonymous crypto accounts commonly used for privacy or unregulated trading will also be prohibited.

The European Crypto Initiative (EUCI) further clarified in its AML Handbook that the restrictions will apply uniformly across all EU member states.

Anonymized financial tools such as passbooks, safe-deposit boxes, and crypto wallets that facilitate transaction masking will also be banned.

Creation of AML Authority and Stricter Supervision of CASPs

A significant part of the AMLR overhaul is the establishment of the new Anti-Money Laundering Authority (AMLA). From 2027, AMLA will directly supervise larger CASPs operating in at least six EU countries.

Initially, 40 companies will be selected for direct oversight, ensuring at least one from each member state is included. Eligible firms must either serve more than 20,000 customers in a single country or process, annual crypto transactions exceeding €50 million (approx. $56 million).

While AMLA will focus on AML enforcement, rules around crypto trading and transactions will continue to follow the Markets in Crypto-Assets (MiCA) framework. However, implementation of these AMLR rules may bring added layers of compliance.

For example, (KYC) checks and transaction screenings may become more rigorous for transfers exceeding €1,000.

As of May 2025, MiCA is being phased in with transition periods ranging from 6 to 18 months. Malta, for instance, may allow limited use of unregulated stablecoins during this grace period. Still, the broader EU move marks a turning point for crypto privacy—and potentially for user freedom in digital finance.

EU Cracks Down: Tougher Rules for Banks, Crypto, and Even Football Clubs

The European Parliament’s adoption of the anti-money laundering announced in April 2024 also broadened the EU’s approach to financial oversight by empowering Financial Intelligence Units (FIUs) to detect and halt suspicious transactions more effectively.

Obliged entities, such as banks, crypto asset managers, and real estate agents were required to carry out enhanced identity checks and report unusual activities.

Notably, starting in 2029, top-tier professional football clubs involved in major financial deals including sponsorships and player transfers would be required to verify client identities and report suspicious transactions.

The new rules also targeted ultra-wealthy individuals with assets above €50 million, enforcing stricter monitoring. A new EU-wide cash payment cap of €10,000 was introduced, with exceptions for private transactions. Authorities also took measures to strengthen compliance with targeted financial sanctions, aiming to close loopholes and prevent circumvention.