The European Union (EU) has announced plans for new regulations aimed at increasing transparency in cryptocurrency transactions. Eurogroup President and Ireland’s Finance Minister, Paschal Donohoe, revealed this proposal at the 2025 European Anti-Financial Crime Summit in Dublin. The initiative requires cryptocurrency service providers to document details of both sender and receiver in every transaction. This aims to establish a new standard for fund transfers, obliging crypto asset companies to keep records of all transactions. Donohoe underscored the importance of enhancing regulatory oversight in the crypto space. 2023 saw the EU enact the Transfer of Funds Regulation, requiring complete traceability of cryptocurrency transactions. The new regulations are set to take effect on July 1, 2027. These measures will prohibit crypto companies from processing transactions involving anonymous wallets and privacy coins, and impose restrictions on non-compliant decentralized exchanges through IP blocking. Patrick Hansen, Circle’s EU Policy Director, noted that the Anti-Money Laundering Regulation doesn’t specifically target cryptocurrency but serves as a general framework applicable to all financial institutions. However, James Toledano, COO of Unity Wallet, expressed concerns about these regulations potentially conflicting with the core principles of decentralized finance (DeFi). Despite this, he acknowledged that users could still liquidate assets through alternative channels given the global nature of cryptocurrencies.