Anonymous Crypto Faces European Union Ban Under New 2027 AML Rules

The new rules fall under the Anti-Money Laundering Regulation (AMLR). If approved, banks, other financial firms, and crypto-asset service providers (CASPs) will no longer be allowed to offer accounts that hide a user’s identity or handle privacy tokens that mask transactions.

The European Crypto Initiative (EUCI) explained in its AML Handbook that Article 79 of the AMLR clearly bans these services. It said, "Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts".

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Another major change is the creation of a new Anti-Money Laundering Authority (AMLA). Starting in 2027, AMLA will directly supervise larger CASPs operating in at least six EU countries. At first, AMLA will choose 40 companies, including at least one from each member state.

To qualify for direct supervision, firms must meet certain criteria. These include having at least 20,000 customers in a single country or handling yearly transactions worth more than 50 million euros (about 56 million US dollars).

The new rules will also require firms to carry out customer checks on any crypto transfers worth more than 1,000 euros (around 1,100 US dollars).

Meanwhile, nearly 30 crypto advocates recently asked the US Securities and Exchange Commission (SEC) to clarify staking rules. What did they say? Read the full story.