Upcoming anti-money laundering rules in the EU will affect privacy tokens and anonymous crypto accounts

The EU is preparing to implement strict anti-money laundering (AML) regulations in 2027, which are expected to have a significant impact on privacy-protected tokens and anonymous cryptocurrency accounts. Under the new Anti-Money Laundering Regulation (AMLR), credit institutions, financial institutions and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or processing privacy-focused cryptocurrencies. This development has sparked ongoing debate over privacy rights between blockchain industry players and regulators. Anja Blaj, an independent legal counsel and policy expert for the European Cryptocurrency Initiative, highlighted the ongoing struggle to maintain access to privacy-protected tokens such as Monero (XMR). On Cointelegraph daily live show X Spaces, Blaj stressed the country’s desire to establish control and understand the parties to the transaction to prevent crime and enforce social policies. Her remarks come as the EU is strengthening supervision of the crypto industry and strengthening it on the basis of crypto asset market supervision (MiCA). Although the anti-money laundering framework has been finalized, regulatory experts believe there is still room for negotiation before it is implemented in 2027. Blaj noted that policymaking is an ongoing process of dialogue, meaning that even finalized regulations may require discussions with regulators on their implementation. However, she acknowledges that regulations on privacy protection of cryptocurrencies and accounts are becoming increasingly strict because they are inconsistent with national interests and plans. Meanwhile, an EU proposal called Chat Control is gaining increasing attention. The program requires platforms such as WhatsApp and Telegram to scan all messages, photos and videos sent by users, even those protected by end-to-end encryption. Although 15 member states have supported the bill, they do not represent the 65% of the population required by the EU to adopt the program. Germany's hesitation remains an important factor