Goodbye to Privacy Coins Like Monero and Zcash

Under the upcoming Anti-Money Laundering Regulation (AMLR), banks, financial institutions, and crypto asset service providers (CASPs) will no longer be allowed to maintain anonymous accounts or handle privacy coins. The regulation specifically targets cryptocurrencies such as Monero and Zcash, which are built around privacy.

Article 79 of AMLR explicitly bans anonymous accounts. And it doesn’t just apply to crypto; anonymous bank accounts, payment accounts, digital wallets, and safety deposit boxes are also included under this restriction.

EU’s Regulatory Structure Finalized, Details on Implementation Coming Soon

The EU’s new AML framework consists of AMLR, AMLD, and AMLAR regulations. While the main structure is largely finalized, the implementation specifics are still being developed. These will mostly be shaped by secondary legislation — implementing and delegated acts — coordinated by the European Banking Authority (EBA).

According to Vyara Savova from the European Crypto Initiative, public input is still being gathered during this phase. She emphasized that centralized crypto projects, especially CASPs regulated under MiCA, should already begin adapting their processes in line with this framework.

Stricter Oversight for CASPs: 6-Country Requirement and 2027 Launch

The new regulatory approach will focus on crypto service providers operating in six or more EU member states. These firms will be subject to direct supervision by AMLA, a new authority to be established for combating money laundering.

Initially, 40 crypto firms will be selected — at least one from each EU country. The selection process starts on July 1, 2027. Key criteria for selection include having over 20,000 local users or more than €50 million in transaction volume.

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