EU to Ban Privacy Coins and Anonymous Crypto Accounts by 2027

Starting in 2027, anonymous cryptocurrency accounts and privacy-focused tokens will be essentially prohibited by the European Union’s strict anti-money laundering legislation. The main component of a larger legislative initiative to strengthen compliance requirements for financial institutions and crypto asset service providers (CASPs) throughout the bloc is the new Anti-Money Laundering Regulation (AMLR).

Banks, credit organizations, and CASPs shall be expressly prohibited from providing anonymous accounts or interacting with digital assets that enhance privacy under Article 79 of the AMLR. The rule also applies to crypto-asset accounts that use anonymization techniques or conceal transaction records, as well as conventional financial products like safe-deposit boxes, passbooks, and bank accounts.

“Strict bans on anonymous accounts are established by AMLR Article 79. The European Crypto Initiative’s (EUCI) AML Handbook states that credit institutions, financial institutions, and crypto-asset service providers are not allowed to keep such accounts.

The Anti-Money Laundering Authority Regulation (AMLAR) and the Anti-Money Laundering Directive (AMLD) are two more legislative elements that make up the regulatory package. Final implementation details will be determined by next implementing and delegated acts overseen by the European Banking Authority, even if the underlying framework has been approved.

“The broader framework is final,” said Vyara Savova, senior policy lead at the EUCI, stressing the necessity for centralized crypto projects subject to the Markets in Crypto-Assets Regulation (MiCA) to start coordinating their internal compliance processes. “The EUCI is actively participating in the public consultation process to shape the level-two legislative acts,” she stated.

The recently established Anti-Money Laundering Authority (AMLA) will start directly monitoring crypto asset service providers that operate in several EU member states as part of the implementation. Starting on July 1, 2027, 40 CASPs—at least one in each member state—will be chosen based on materiality standards, such as a minimum of 20,000 clients per jurisdiction or a transaction volume of €50 million ($56 million).

Additionally, all transactions over €1,000 ($1,100) must undergo rigorous customer due diligence (CDD) under the new AMLR. This measure is anticipated to greatly improve traceability and transparency in the digital asset market.

This move highlights a clear shift toward centralized monitoring and consumer protection in the digital banking landscape and continues the EU’s regulatory tightening of the crypto sector, which follows historic initiatives like MiCA.