In a historic policy shift, the European Union has passed the Anti-Money Laundering Regulation (AMLR), a sweeping law that bans anonymous crypto wallets and privacy coins starting July 1, 2027.
The new regulation targets large crypto service providers—any entity operating across six or more EU states, serving 20,000+ users, or transacting over €50 million will be directly governed by the newly established Anti-Money Laundering Authority (AMLA).
By 2029, a real-time centralized registry will allow regulators across the bloc to identify every crypto account holder, effectively ending the era of pseudonymous wallet use in Europe.
CASPs and financial institutions must shut down all anonymous accounts, reject privacy-focused tokens, and verify all crypto transfers above €1,000. Wallets deemed “self-hosted” will face additional scrutiny, especially for higher-risk cross-border activity.
To help with the rollout, the EU Crypto Initiative (EUCI) published an AML playbook covering mandatory ID checks, wallet tracking, risk scoring, and future registry compatibility.
Platforms dealing in privacy coins will need to overhaul their model, block EU users, or risk expulsion from one of the world’s largest crypto markets.
Why the EU Is Surpassing the U.S. in Crypto Regulation
The EU now ranks as the most crypto-forward banking zone globally, with 63 institutions offering regulated digital asset services. Long-term policy support through MiCA, PSD2, and now AMLR has positioned Europe ahead of the U.S., where crypto policy remains fragmented.
Upcoming access to central bank settlement systems for non-banks and instant SEPA rails will further enhance Europe’s crypto edge.
More Nations Move Toward Sovereign Control of Crypto
Globally, the tide is turning toward state-managed crypto platforms. Russia is developing a government-backed exchange and exploring a domestic stablecoin for cross-border use—following recent tensions and asset freezes.
The trend is clear: regulators worldwide are tightening control, and the EU’s AMLR is the most definitive move yet to bring crypto into full regulatory alignment.
As privacy fades, a compliant, centralized digital asset future is fast approaching.
