The European Union plans to enhance the tracking of cryptocurrency transfers as part of its new Anti-Money Laundering Regulation (AMLR), according to Eurogroup President Paschal Donohoe. The regulation aims to record data on both senders and recipients of funds connected to crypto-asset service providers, promoting transparency in crypto transactions. By July 1, 2027, cryptocurrency service providers will be prohibited from interacting with anonymous wallets and privacy coins. This regulation also necessitates exchanges to identify users of self-hosted wallets for transactions exceeding €1,000, raising concerns about potential surveillance and privacy violations in the crypto space. Critics, including developers of privacy coins like Monero, argue that such regulations are disproportionate and may push legitimate users towards less transparent channels. Concerns over compliance with the EU’s data protection laws have also been raised, suggesting legal challenges could emerge. Despite these critiques, the EU aims to align cryptocurrency regulations with traditional financial standards to combat financial crime effectively.

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