EU to Enforce Comprehensive Anti-Money Laundering Rules on Cryptocurrencies by 2027

According to Cointelegraph, the European Union is preparing to implement extensive Anti-Money Laundering (AML) regulations that will prohibit privacy-preserving tokens and anonymous cryptocurrency accounts starting in 2027. The new Anti-Money Laundering Regulation (AMLR) will prevent credit institutions, financial institutions, and crypto asset service providers (CASPs) from maintaining anonymous accounts or dealing with privacy-preserving cryptocurrencies. Article 79 of the AMLR outlines strict bans on anonymous accounts, as detailed in the AML Handbook published by the European Crypto Initiative (EUCI). The regulation is part of a larger AML framework that encompasses bank and payment accounts, passbooks, safe-deposit boxes, crypto-asset accounts that allow transaction anonymization, and accounts utilizing anonymity-enhancing coins. Vyara Savova, senior policy lead at the EUCI, noted that while the regulations, including the AMLR, AMLD, and AMLAR, are finalized, the interpretation of certain requirements will be addressed through implementing and delegated acts. These acts are primarily managed by the European Banking Authority, and the EUCI is actively contributing feedback to public consultations as some implementation details are still pending finalization. Under the new regulatory framework, CASPs operating in at least six member states will be subject to direct AML supervision. Initially, the Anti-Money Laundering Authority (AMLA) plans to select 40 entities, ensuring at least one entity per member state, with the selection process commencing on July 1, 2027. AMLA will employ materiality thresholds to ensure that only firms with significant operational presence in multiple jurisdictions are considered for direct supervision. These thresholds include a minimum of 20,000 customers residing in the host member state or a total transaction volume exceeding 50 million euros ($56 million). Additionally, mandatory customer due diligence will be required for transactions above 1,000 euros ($1,100). These developments occur as the EU intensifies its regulatory oversight of the cryptocurrency industry, building on previous initiatives such as the Markets in Crypto-Assets Regulation (MiCA). The new measures aim to enhance transparency and accountability within the sector, addressing concerns related to money laundering and financial crime.