EU AMLR Privacy Coin Ban 2027: Article 79 and AMLA Explained

From 10 July 2027, the EU Anti-Money Laundering Regulation (AMLR, Regulation (EU) 2024/1624) bans crypto-asset service providers from keeping anonymous crypto-asset accounts or any account that allows transactions to be anonymised or obfuscated, "including through anonymity-enhancing coins". That is Article 79, and in practice it means EU-regulated exchanges and custodians cannot offer Monero-style privacy coins. It does not make it illegal for you to own them or hold them in your own wallet.

The ban is one part of a bigger package. The AMLR replaces national anti-money laundering rules with one EU rulebook, a new EU authority (AMLA, based in Frankfurt) starts supervising the riskiest cross-border firms directly from 2028, and the Transfer of Funds Regulation already governs transfers to and from self-hosted wallets.

What is the AMLR?

The AMLR is the core of the EU's anti-money laundering package, which was published in the Official Journal on 19 June 2024 together with the AMLA Regulation (EU) 2024/1620 and the sixth AML Directive (EU) 2024/1640, according to AMLA's own timeline.

Earlier EU AML rules were directives that each country wrote into national law differently. The AMLR is a regulation, so it applies directly in every member state. Article 90 says it applies from 10 July 2027. The only exception is football agents and professional football clubs, which follow from 10 July 2029.

The AMLR lists crypto-asset service providers (CASPs) as financial institutions and borrows the CASP definition from MiCA, so MiCA-authorised firms become "obliged entities" with bank-style duties: due diligence, monitoring, reporting and record keeping. Our guide to what a VASP is covers the global definition.

Article 79: the privacy coin ban, word by word

Article 79(1) of the AMLR says credit institutions, financial institutions and CASPs "shall be prohibited from keeping" anonymous accounts of several kinds, including "anonymous crypto-asset accounts as well as any account otherwise allowing for the anonymisation of the customer account holder or the anonymisation or increased obfuscation of transactions, including through anonymity-enhancing coins."

• The definition is broad. Article 2(1), point (25), defines anonymity-enhancing coins as crypto-assets "that have built-in features designed to make crypto-asset transfer information anonymous, either systematically or optionally". So a coin need not be private by default to be caught.
• It targets providers, not people. The prohibition is on CASPs keeping such accounts. Recital 160 adds that it "does not apply to providers of hardware and software or providers of self-hosted wallets insofar as they do not possess access to or control over those crypto-asset wallets."
• Existing accounts need checks. The second subparagraph of Article 79(1) says owners and beneficiaries of existing anonymous accounts, including crypto-asset accounts, must go through customer due diligence before those accounts are used in any way.

The AMLR is not the first EU rule here. MiCA Article 76(3) already requires trading platforms to block the admission of crypto-assets "that have an inbuilt anonymisation function unless the holders of those crypto-assets and their transaction history can be identified". MiCA's CASP rules have applied since 30 December 2024. Article 79 goes further, covering every CASP and every kind of account.

What it means for Monero and Zcash holders

Monero is the clearest case. The Monero project describes every user as "anonymous by default", with the sender, receiver and amount hidden by stealth addresses, ring signatures and RingCT. That is a "systematic" built-in anonymity feature in the AMLR's terms.

Zcash is less clear-cut. The Zcash site explains that users can choose shielded addresses, which keep transaction details private, or transparent ones, which are public like most blockchains. Because the AMLR definition includes coins that are anonymous "optionally", a plain reading suggests Zcash falls inside it even if an exchange only touches transparent addresses. How strictly supervisors read that is not yet settled.

Most major exchanges did not wait for 2027:

• Binance announced on 6 February 2024 that it would delist XMR, with trading ending on 20 February 2024, as reported by Cointelegraph.
• Kraken stopped XMR trading and deposits in the European Economic Area from 31 October 2024, citing "regulatory changes". EEA users had until 31 December 2024 to withdraw, after which balances were converted to bitcoin, according to Cointelegraph's report of Kraken's notice.

If you hold a privacy coin, here is what changes and what does not:

• Owning XMR or ZEC is not made illegal by the AMLR. The obligations sit with regulated firms.
• You should expect no EU-regulated exchange or custodian to hold these coins for you after 10 July 2027. If yours still does, withdraw in time: forced conversions are a common end point.
• Funds that touched privacy coins or mixers may draw extra questions at a regulated exchange (see AML red flags in crypto).

What CASPs must do under the AMLR

Beyond Article 79, the AMLR sets several crypto-specific duties. The main ones:

• Due diligence on occasional transactions. Article 19(3) requires CASPs to apply full customer due diligence on occasional transactions of EUR 1,000 or more, including linked transactions, and at least to identify the customer below that amount. There is no "small transaction" exemption for crypto.
• Self-hosted address risk. Article 40 requires CASPs to assess the risk of transfers to or from self-hosted addresses and to apply one or more mitigating measures, such as verifying who is behind the address, asking for more information on the origin or destination of the assets, or enhanced ongoing monitoring. AMLA must issue guidelines on this by 10 July 2027.
• Correspondent relationships. Article 37 requires enhanced checks before a CASP works with a non-EU counterparty providing similar services: whether it is licensed or registered, its reputation and supervision, its AML controls, and senior management approval.

The detail is being filled in now. On 1 October 2026, AMLA said it had finalised three sets of draft regulatory technical standards, covering customer due diligence (including non-face-to-face verification and PEP screening), how to identify occasional and linked transactions, and group-wide controls. They have gone to the European Commission and are proposed to apply six months after they enter into force.

Vendors such as iDenfy's AML screening tool automate the sanctions, PEP and adverse media checks that sit inside customer due diligence. Our guides to CDD versus EDD and blockchain analytics cover the rest.

Self-hosted wallets and the EUR 1,000 rule

Transfers to your own wallet are governed by a separate law that is already in force: the Transfer of Funds Regulation (EU) 2023/1113, which has applied since 30 December 2024. It is the EU version of the crypto Travel Rule.

• Every CASP-to-CASP transfer carries data. Article 14 requires the sending CASP to pass on the originator's name, address and account details, plus the beneficiary's name and address, with no minimum amount.
• Transfers to a self-hosted address. Article 14(5) requires the CASP to obtain and hold that same information. For amounts above EUR 1,000, it must take adequate measures to assess whether the address is owned or controlled by its own customer.
• Transfers from a self-hosted address. Article 16(2) applies the same EUR 1,000 test to the receiving CASP.

This is why an exchange may ask you to sign a message from your wallet or confirm the address is yours before a large withdrawal.

AMLA and direct supervision from 2028

The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) is a new EU agency with its seat in Frankfurt am Main. According to AMLA's website, it was legally established on 26 June 2024, Bruna Szego was appointed its first Chair on 21 January 2025, and it began operations in summer 2025.

Its headline power is direct supervision. Under Articles 12 and 13 of the AMLA Regulation:

• AMLA periodically assesses credit and financial institutions that operate in at least six member states, with CASPs listed as one of the categories assessed.
• Those with a high residual risk profile qualify as "selected obliged entities". In the first round, if more than 40 qualify, AMLA takes the 40 operating in the most member states.
• AMLA must start the first selection by 1 July 2027, finish it within six months, publish the list, and begin direct supervision six months after publication. AMLA's timeline puts the start of direct supervision in 2028.

Everyone else stays with their national supervisor. On 7 October 2026 it published its response to the Commission's MiCA review, suggesting that staking, lending and borrowing be brought into the framework and asking for a clear legal definition of DeFi arrangements and of who exercises effective control over them.

Timeline: the dates that matter

What this means for users and DeFi

For most people, the AMLR means more of the same checks. The real change is for privacy coin holders, who lose regulated EU on-ramps.

The rules apply to obliged entities, not software. The open question is how far "control" reaches in DeFi, which AMLA has asked the Commission to define. JewelSwap's apps on MultiversX, Sui and Radix are non-custodial and do not run KYC themselves; our explainer on KYC in DeFi covers how that works.

Frequently asked questions

Does the EU ban privacy coins in 2027?

Not for individuals. From 10 July 2027, Article 79 of the AMLR (Regulation (EU) 2024/1624) prohibits crypto-asset service providers and banks from keeping anonymous accounts or accounts that allow anonymisation, including through anonymity-enhancing coins. Holding a privacy coin in your own wallet is not banned.

What are anonymity-enhancing coins under the AMLR?

Article 2(1), point (25), of the AMLR defines them as crypto-assets with built-in features designed to make transfer information anonymous, either systematically or optionally. Monero, which is private by default, fits that description, and coins with optional privacy features can also be caught.

Can I still hold Monero in the EU after July 2027?

Yes, in a self-hosted wallet. The ban applies to regulated providers, and recital 160 excludes hardware, software and self-hosted wallet providers that have no access to or control over users' wallets. An EU-regulated exchange or custodian should not hold Monero for you.

What is AMLA?

AMLA is the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism, set up by Regulation (EU) 2024/1620 and based in Frankfurt. It coordinates national supervisors, issues standards, and from 2028 will directly supervise up to 40 high-risk cross-border financial firms, which can include crypto-asset service providers.

What is the EUR 1,000 rule for self-hosted wallets?

Under the Transfer of Funds Regulation (EU) 2023/1113, in force since 30 December 2024, a crypto-asset service provider must assess whether a self-hosted address is owned or controlled by its customer when a transfer to or from that address exceeds EUR 1,000.

Does the AMLR apply to DeFi?

The AMLR applies to obliged entities such as crypto-asset service providers, not to software as such. How it applies to DeFi arrangements is still open: in October 2026 AMLA asked the European Commission for a clear legal definition of DeFi and of who exercises effective control.

Keep reading

• What is MiCA? The EU crypto regulation explained
• The crypto Travel Rule explained
• What is a VASP?
• AML red flags in crypto
• KYC in DeFi explained

This article is educational and is not legal or financial advice. Legal references are to Regulation (EU) 2024/1624 (AMLR), Regulation (EU) 2024/1620 (AMLA Regulation), Directive (EU) 2024/1640, Regulation (EU) 2023/1113 (Transfer of Funds Regulation) and Regulation (EU) 2023/1114 (MiCA), all checked on EUR-Lex on 12 October 2026. AMLA dates and announcements are from amla.europa.eu as of 12 October 2026; exchange delisting details are from Cointelegraph's reports of the exchanges' notices.