The European Union has strengthened its legislation on anti-money laundering (AML). According to the updated legislation, starting from 2027, the circulation of so-called “anonymous coins,” such as Monero (XMR) and Zcash (ZEC), on platforms regulated under the crypto-assets rules (MiCA) will be prohibited. This means that crypto service providers, including exchanges, wallets, and decentralized finance (DeFi) protocols, will be required to cease processing transactions involving coins that utilize privacy mechanisms, such as zk-SNARKs or ring signatures, which complicate user identification.
This is reported by Business • Media
What the New Rules Mean for Cryptocurrencies
Under the new provisions, any services that provide opportunities for transaction anonymization, such as mixers and obfuscation protocols, will be banned. This also applies to technical solutions that allow for the concealment of information about participants or transactions. Additionally, for transactions exceeding 1,000 euros, platforms are required to conduct mandatory user identity verification in accordance with “know your customer” (KYC) rules.
“These measures are aimed at preventing the use of cryptocurrencies for financing criminal activities, including terrorism, human trafficking, and tax evasion,” the document’s explanation states.
The implementation and detailing of the new rules will be overseen by the EU’s Anti-Money Laundering Authority (AMLA), established in 2024. By July 10, 2026, it will publish standards for high-risk sectors, transaction thresholds for enhanced scrutiny, and criteria for identifying one-off and related transactions.
Direct Supervision Mechanism and Company Selection Criteria
By July 10, 2027, AMLA will issue guidelines for assessing the reliability of counterparties, minimum measures for illegal or unregistered crypto platforms, and risk management for crypto services. At least 40 companies from six EU member states that meet the criteria—having at least 20,000 clients or transaction volumes exceeding 50 million euros in their country of registration—will be subject to direct supervision. Thresholds will be determined in technical standards that will define the “substantial presence” of companies in EU regions.
Previously, provisions were approved that apply to service providers and require compliance with anti-money laundering obligations, including a ban on Monero due to its privacy mechanisms, while MetaMask currently does not fall under these restrictions.