EU Cracks Down: Crypto Anonymity Dead by 2027

Brace for impact—European regulators just fired the killshot on anonymous crypto transactions. The new rules land in 2027, forcing full transparency across exchanges and DeFi platforms.

No more ghost wallets: Every transfer now gets tagged like a tracked parcel. Privacy coins? Effectively outlawed. Self-custody wallets? Now married to verified identities.

Bankers are already smirking—nothing makes traditional finance happier than watching crypto get strapped into the same compliance straitjacket they’ve worn for decades. The ’revolution’ just got notarized.

In brief

• The European Union will ban cryptos, anonymous accounts, and privacy tokens starting in 2027.
• CASPs will no longer be able to manage anonymous accounts or confidential crypto wallets.
• Providers active in multiple states will be subject to direct supervision by the AMLA.
• Any crypto transaction exceeding 1,000 euros will require identity verification.

The war against crypto anonymity intensifies

The European Union is taking a new step in its fight against money laundering: from 2027, anonymous cryptos, including privacy tokens like Monero or Zcash, will be banned from the European market. This measure is part of the new Anti-Money Laundering Regulation (AMLR), recently finalized by European institutions.

Article 79 of the regulation stipulates the formal prohibition for financial institutions, banks, and crypto service providers (CASPs) from maintaining or managing anonymous accounts. Also targeted are crypto accounts enabling transaction anonymization and wallets using privacy-focused coins.

A radical change for CASPs in Europe

With the AMLR, CASPs active in at least six member states will be subject to direct supervision by the new anti-money laundering authority (AMLA) starting July 2027. AMLA plans to select 40 entities based on strict thresholds:

• minimum 20,000 crypto clients in one member state, or
• crypto transaction volume exceeding 50 million euros.

CASPs will also have to implement identity verification procedures on all transactions exceeding 1,000 euros. These new rules complement the MiCA framework, already in force to supervise crypto providers’ activities. They reflect Brussels’ desire to curb illicit use of cryptocurrencies while strengthening sector oversight.

What consequences for the crypto ecosystem?

This regulatory toughening will force centralized crypto players to review their internal practices, while decentralized projects could find themselves marginalized on European soil. The debate on privacy protection versus financial transparency is reignited. Which side are you on?

With the ban on anonymous cryptos, the EU sends a strong signal: the era of anonymity is coming to an end at the same time Europe stealthily advances towards a cashless society. While transparency is becoming the norm, this regulation could also slow decentralized innovation. A new era begins, balancing increased surveillance and questions about fundamental digital freedoms.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.