The European Union will ban anonymous crypto accounts and privacy-enhancing cryptocurrencies like Monero and Zcash by 2027.
The decision is part of the EU's new Anti-Money Laundering Regulation (AMLR), which explicitly prohibits credit institutions, financial institutions, and crypto-asset service providers (CASPs) from maintaining anonymous accounts and handling privacy-enhancing cryptocurrencies.
From July 1, 2027, CASPs operating in at least six EU member states will be under direct supervision, with the Anti-Money Laundering Authority (AMLA) selecting 40 entities for monitoring based on criteria such as a minimum of 20,000 resident customers or transaction volumes exceeding €50 million. The regulation mandates customer due diligence for all transactions above €1,000, which according to Vyara Savova, senior policy officer at the European Crypto Initiative (EUCI), is already prompting centralised crypto projects regulated by MiCA to prepare by reviewing internal processes and policies. The regulatory announcement triggered significant market impact: on May 2, 2025, following Crypto Rover's Twitter announcement, Monero's price plummeted 8.3% to $132.45, while Zcash fell 6.7% to $28.15. According to Binance data, the XMR/BTC pair decreased by 5.1% and ZEC/BTC by 4.8%, while Monero's trading volume surged by 42% to $98.5 million and Zcash's volume increased by 37% to $54.2 million as reported by CoinMarketCap. Monero's transaction count rose by 18% to 12,300, indicating panic selling according to Monero Blockchain Explorer data. Meanwhile, on Kraken exchange, Monero's order book depth thinned with bid-ask spreads widening by 12% to $0.35, while on Bybit's derivatives platform, open interest for XMR and ZEC increased by 25% to $45 million and $18 million respectively.
The new regulatory framework sets the European crypto ecosystem on a predetermined path, radically transforming the privacy coin market and trader behaviour. Technical analyses suggest further price declines: Monero's RSI dropped to 38, Zcash's RSI fell to 41, with both coins breaking below their 50-day moving averages—XMR below $138 and ZEC below $29.50. According to TradingView data, the MACD for both assets shows bearish crossovers, with signal lines trending below zero. Coinalyze reports that AI-driven trading platforms saw a 10% volume increase for privacy coin pairs, suggesting algorithmic trading may amplify price movements. This clearly signals that in the EU's future of cryptocurrencies, there is no place for anonymity.
Sources:
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Alessia Pannone
2.
Zoltan Vardai
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