EU Targets Privacy Coins in New Anti-Money Laundering Rules

The European Union has approved new anti-money laundering rules that target privacy coins while leaving direct Bitcoin transfers between private wallets untouched. The regulation, which takes effect on July 10, 2027, prohibits regulated crypto firms from supporting anonymity-enhancing cryptocurrencies and requires them to conduct full customer due diligence for occasional transactions worth €1,000 or more.

Regulated crypto businesses must identify customers for all transactions below the threshold, although they are not required to complete the same level of verification applied to larger transactions or ongoing business relationships. The legislation also prohibits anonymous crypto accounts and services that allow transaction anonymization or increased obfuscation.

Cash payments face new limits across the bloc, with a harmonized €10,000 ceiling for commercial cash payments. Individual member states may continue enforcing lower limits if national authorities choose stricter controls. Professional football clubs, football agents, crowdfunding operators, investment migration businesses, luxury goods dealers, and several other sectors will now be required to carry out compliance checks and report suspicious activity.