EU to Ban Anonymous Crypto Transactions by 2027 in Anti-Money Laundering Push

The European Union has taken a decisive step toward eliminating financial anonymity in digital asset markets. By 2027, the bloc will prohibit confidential cryptocurrencies and anonymous accounts—a move that fundamentally alters privacy assumptions in blockchain ecosystems.

Crypto Asset Service Providers (CASPs) face sweeping operational changes. The regulations mandate identity verification for transactions exceeding €1,000 and eliminate privacy-focused wallet options. Firms operating across multiple member states will answer directly to the Anti-Money Laundering Authority (AMLA).

This crackdown reflects growing institutional discomfort with pseudonymous finance. While proponents argue privacy coins enable legitimate confidentiality, regulators increasingly view them as vectors for illicit flows. The €1,000 verification threshold suggests retail users won’t escape scrutiny.