EU Targets Privacy Coins, Leaving Bitcoin Transfers Unscathed

The European Union has approved new anti-money laundering rules that target privacy-focused cryptocurrencies while leaving direct Bitcoin transfers between private wallets untouched. The regulation, which will take effect on July 10, 2027, bars regulated crypto firms from supporting anonymity-enhancing assets starting in July 2027.

Regulated crypto businesses must conduct full customer due diligence for occasional transactions worth €1,000 or more, while smaller transactions require identification but less stringent verification. The new framework prohibits anonymous crypto accounts and services that facilitate transaction anonymization or obfuscation.

The regulation also introduces a €10,000 cash payment cap and stricter know-your-customer rules for crypto transactions. It expands the list of entities covered by EU anti-money laundering obligations, including professional football clubs, crowdfunding operators, and investment migration businesses.