The European Union has approved new anti-money laundering regulations prohibiting regulated crypto institutions from supporting privacy coins; Bitcoin transfers between private wallets are unaffected.

Deep Tide TechFlow News, June 20th, according to Crypto.news reports, the European Union has approved new anti-money laundering (AML) regulations, which will prohibit regulated crypto companies from supporting privacy coins, while excluding direct transfers of Bitcoin between private wallets from mandatory identity verification requirements. Under the EU Regulation 2024/1624, effective from July 10, 2027, crypto asset service providers operating within the EU will face stricter customer verification obligations and new restrictions on services that enhance transaction anonymity.

The report states that under the new framework, regulated crypto companies, including exchanges and custodians, must conduct full customer due diligence for temporary crypto transactions valued at 1,000 euros (about $1,150) or more; transactions below this threshold still require customer identification. The regulation explicitly bans anonymous crypto accounts and services that enable transaction anonymization or increased obfuscation, including those involving privacy-enhancing cryptocurrencies. However, the legislation does not prohibit individuals from holding or privately using these cryptocurrencies. The clarifications accompanying the regulation specify that identity verification requirements apply to crypto asset service providers, not to every blockchain transaction, and direct transfers between self-custodied wallets are not subject to these obligations.

Additionally, the regulation establishes a €10,000 (about $11,500) cap on business cash payments within the EU and expands the scope of entities covered by AML obligations to include professional football clubs, football agents, crowdfunding operators, investment immigration companies, and luxury goods dealers.