Just read it—Europe is really tightening the compliance screws. Starting July 2027, Monero, Zcash, and other privacy coins will be completely phased out. This is no longer just talk; the new AMLR law has been passed and is serious about anonymous transactions.

What surprised me even more: self-custody wallets won't be directly banned, but from 1,000 euros onward, exchanges will have to verify your full identity—name, address, source of funds. A cold wallet won't help either. Exchanges will need to conduct full Customer Due Diligence for any large transfer. Practically, that means showing your ID, bank statements, and possibly even a video proof that you are executing the transaction. The cold wallet ban isn't officially in place, but in effect, anonymity is gone.

The market reaction was interesting—privacy coins initially plummeted, then rebounded the next day. Monero, for example, up about 5%. Investors seem to think: the stricter the regulation, the scarcer the supply. But experts warn that this is just the calm before the storm. By 2027, these coins will either be completely repositioned or lose significant value.

For smaller exchanges, it will be critical. To meet the new requirements, they need expensive blockchain analysis tools and full compliance teams. According to the EBA, up to 30% of smaller platforms might not be able to handle this and will have to shut down. Even major players are struggling—just look at how much effort it takes to meet the new standards.

And it doesn't stop there: all stablecoin issuers now need a legal license. USDT was removed from the EU market in December because it didn't meet the requirements. Users had to switch to USDC.

Globally, this seems to be a trend. The UK is following suit, Switzerland too. Even the SEC in the US is now approving XRP ETFs—cryptocurrencies are moving closer to traditional finance, but under stricter conditions.

What’s left? Bitcoin and Ethereum are becoming the new favorites of institutions. Privacy coins are turning into niche toys. Decentralized protocols like Tornado Cash are trying to find a way, but the risk for developers remains high.

My advice: start preparing now. If you're moving large sums from self-custody wallets, have your ID documents and bank statements ready. The cold wallet ban isn't official, but practically, that's how it works. Choose exchanges with real EU licenses and expect compliance requirements to only get stricter. 2027 is closer than you think.