The European Union has announced plans to implement new Anti-Money Laundering (AML) regulations that will prohibit the use of anonymous cryptocurrency accounts and privacy tokens starting in 2027. Under the new AML Regulation (AMLR), financial institutions and crypto asset service providers will be forbidden from maintaining anonymous accounts or processing privacy-enhanced cryptocurrencies. The AMLR establishes strict limits on numerous services, including crypto accounts that allow transaction anonymization. The European Crypto Initiative emphasizes that while the broader regulation is finalized, the specific implementation details will be clarified through additional acts managed by the European Banking Authority. Moreover, crypto asset service providers operating in at least six EU member states will come under direct AML supervision, starting with a selection of 40 entities. Companies need to follow new materiality thresholds regarding customer presence and transaction volume, ensuring robust compliance as they navigate these regulatory changes.

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