EU Imposes Privacy Token Ban: Implications for Cryptocurrency Landscape by 2027

The European Union (EU) is introducing stringent regulations impacting privacy-focused cryptocurrencies. Under its Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) framework, CASPs (Centralized Application Security Protocols), banks, and financial institutions will be strictly prohibited from facilitating transactions involving anonymity-enhancing crypto assets or accounts. These new rules, detailed in the Markets in Crypto-Assets Regulation (MiCA), mandate robust identity verification procedures for all crypto activities. Starting in 2027, this sweeping regulation is set to impact the cryptocurrency industry.