The European Union has formally approved the Anti-Money Laundering Regulation (AMLR), which will ban anonymous crypto accounts and privacy-enhancing tokens starting 1 July 2027. This decision marks a pivotal shift in how the bloc treats digital assets—aligning them fully with traditional financial compliance standards.
Under the regulation, Crypto-Asset Service Providers (CASPs) operating in more than six EU nations, handling over €50 million in transactions, or serving more than 20,000 customers will fall under the direct supervision of the new Anti-Money Laundering Authority (AMLA).
By 2029, EU regulators will have access to an automated central registry mapping all crypto account holders, effectively eliminating the anonymity that has long defined parts of the crypto space.
The rules mandate closure of anonymous wallets, full customer identity verification for any crypto transactions over €1,000, and enhanced scrutiny of self-custody transactions—especially if deemed risky.
To prepare the sector, the European Crypto Initiative (EUCI) released a 13-point compliance guide. It includes obligations such as real-time wallet monitoring, cross-border audits, and the integration of KYC/AML tools for every customer and transaction.
Privacy coin platforms will be hit the hardest. They must comply, geofence EU users, or exit the market altogether. Non-compliance could lead to fines, delisting, and market exclusion.
Why Europe Is Leading in Regulated Crypto Growth
Unlike the U.S., where regulatory battles continue, the EU’s clarity through MiCA, PSD2, and AMLR offers a stable foundation for digital asset innovation. Already, over 60 financial institutions across Europe offer crypto services.
This is backed by instant SEPA settlement expansion, and soon, non-bank access to ECB infrastructure—a leap that may further widen the gap between the EU and jurisdictions like the U.S.
Global Shift Toward Government-Led Crypto Infrastructure
Outside Europe, countries like Russia are moving to launch national crypto exchanges, limiting access to ultra-wealthy investors while exploring sovereign stablecoins to mitigate reliance on foreign digital assets.
This global direction points toward a future of government-backed crypto platforms, stricter controls, and a more centralized approach to what was once a decentralized ecosystem.
As the AMLR takes effect, the European crypto industry now has a clear timeline—and a warning: adapt or be regulated out.
