The European Union (EU) is bolstering its crypto regulations with a new Anti-Money Laundering (AML) framework, aiming to enhance transparency and accountability in the cryptocurrency space. Speaking at the European Anti-Financial Crime Summit 2025 in Dublin, Irish finance minister Paschal Donohoe emphasized the importance of broader financial regulation for cryptocurrencies, highlighting their need for increased traceability similar to traditional financial transactions. Donohoe stressed that his initiative is a “reclass of performance transfer mechanisms,” marking a significant step towards treating crypto transactions like conventional banking movements.
The new rules, backed by EU institutions and informed by the Transfer of Funds Regulation, require crypto service providers to record detailed transaction data, increasing transparency. This framework builds upon existing regulations requiring full traceability of crypto asset movements within the bloc.
A separate initiative focuses on strengthening anti-money laundering efforts across the EU through the Anti-Money Laundering Authority (AMLA). The new regulation will implement stricter rules on anonymity and privacy for crypto, including a ban on anonymous wallets and privacy coins starting July 1, 2027. Furthermore, decentralized exchanges (DEXs) non-compliant with these rules will face IP address blocks within the EU.
The measures represent a landmark step in Europe’s efforts to combat illicit finance through cryptocurrencies.