The European Union approved rules that will ban regulated crypto firms from supporting privacy coins. The rules will take effect on July 10, 2027, under Regulation (EU) 2024/1624. Under the new framework, crypto-asset service providers in the bloc must apply stricter customer checks. They must carry out full due diligence for occasional crypto transactions worth €1,000 or more.
For smaller transactions, providers still need to identify customers. They do not need to apply the same level of verification used for larger transfers or ongoing business relationships. The regulation also bars anonymous crypto accounts and services that increase transaction obfuscation. That includes services involving anonymity-enhancing .
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Even so, the rules do not ban people from owning privacy-focused assets or using them privately. The clarification published with the regulation says the identification requirements apply to service providers, not every blockchain transaction.
Separate rules underknown as the Travel Rule framework, still require regulated providers to pass sender and recipient information during crypto transfers. Extra checks apply when self-hosted wallet transfers reach €1,000 or more and a regulated intermediary is involved. Users on exchanges and other regulated platforms must complete know-your-customer procedures. At the same time, peer-to-peer Bitcoin transfers without an intermediary do not trigger direct identity verification under EU law.