The European Union is set to introduce new rules targeting money laundering that will prohibit the use of anonymous cryptocurrencies and accounts. This decision is expected by 2027.
New Anti-Money Laundering Regulations
Under the new Anti-Money Laundering Regulation (AMLR), credit and financial institutions, as well as crypto asset service providers (CASPs), will be prohibited from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies. The AML Handbook states, "Article 79 of the AMLR establishes strict prohibitions on anonymous accounts [...] Credit institutions, financial institutions, and crypto-asset service providers must cease maintaining anonymous accounts."
Guidance for Crypto Service Providers
As part of the new regulatory framework, CASPs operating in at least six member states will be under direct AML supervision. In the initial stage, AMLA plans to select 40 entities, with at least one entity from each member state. The selection process is set to begin on July 1, 2027.
Additional Control Measures
AMLA will employ "materiality thresholds" to ensure that only firms with "substantial operational presence in multiple jurisdictions" are considered for direct supervision. Other notable measures include mandatory customer due diligence for transactions above €1,000 ($1,100).
The upcoming EU regulations represent significant changes in the cryptocurrency sector aimed at curbing anonymity and enhancing oversight over financial transactions.
