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EU to Enforce Stricter Crypto Rules by 2027

Key Takeaways

The European Union (EU) is tightening its regulation of the crypto market. Starting July 1, 2027, the new Anti-Money Laundering Regulation (AMLR) will come into effect. It requires key industry players, particularly crypto service providers, to increase transparency. Anonymous cryptocurrencies such as Monero and Zcash will be banned. In total, up to 40 crypto companies in the EU will be placed under direct supervision.

What is Behind the New AMLR Regulation?

With the AMLR (Anti-Money Laundering Regulation), the EU aims to combat money laundering and terrorist financing in the digital space. The focus is on so-called CASPs (Crypto Asset Service Providers), meaning providers of crypto services such as exchanges or wallet platforms.

The regulation prohibits:

• trading in privacy-enhancing cryptocurrencies such as Monero (XMR) and Zcash (ZEC)
• maintaining anonymous crypto accounts
• processing anonymous transactions by financial institutions

The new rules apply not only to crypto platforms but also to traditional banks and digital payment systems. The goal is to create a uniform, transparent framework for all financial service providers in the EU.

Direct Supervision of 40 Crypto Service Providers

Starting in July 2027, the newly established EU authority AMLA (Anti-Money Laundering Authority) will assume direct supervision of up to 40 crypto service providers. The criteria: The companies must be active in at least six EU member states and either manage more than 20,000 customer accounts or process over 50 million euros in transactions annually.

This measure is intended to ensure that particularly large and cross-border providers are subject to stricter oversight. The EU aims to detect and address systemic risks at an early stage.

MiCA and the Role of ESMA

In parallel with the AMLR, the EU is pursuing another goal with the MiCA regulation (Markets in Crypto-Assets): greater market stability. The European financial regulator ESMA (European Securities and Markets Authority) has clarified that certain actors such as miners, validators, or so-called “builders” are not subject to the market abuse reporting obligation.

Instead, the responsibility lies with the CASPs. They must detect and report suspicious activities—similar to how banks handle traditional financial transactions.

Why These Measures?

The EU views the increasing anonymity in the crypto space as a risk for money laundering, tax evasion, and terrorist financing. With the new regulations, it aims to:

• improve the traceability of transactions
• establish uniform regulation across all member states
• strengthen consumer protection

At the same time, industry representatives such as Patrick Hansen from Circle emphasize that the EU leaves room for innovation through flexible interpretation of certain rules.

Our Assessment

The new EU requirements mark a turning point for the crypto sector in Europe. For you as a user, this means more security, but also less anonymity. If you trade in cryptocurrencies or plan to invest in crypto projects, you should closely monitor regulatory developments.

The regulations could put pressure on smaller providers, while larger platforms will need to adapt their processes. For the industry as a whole, this is a step toward maturity and integration into the traditional financial system.

Whether these measures will foster or hinder innovation remains to be seen. What is clear: the EU does not want to ban the crypto market, but to allow it to grow in a controlled manner.

Sources

• European Securities and Markets Authority (ESMA)
• European Crypto Initiative (EUCI)
• Circle – Statement by Patrick Hansen