The EU’s usage of cryptocurrencies may see even stricter rules based on updated anti-money laundering (AML) regulations. Anonymous coins and wallets with privacy features may face even more severe restrictions.
More crypto regulations are expected in the EU over the next few years. This time, institutions handling crypto will be the ones to bear the weight of restrictions. The European Crypto Initiative outlines the upcoming changes, which may be fully implemented by 2027.
The Anti-Money Laundering Regulation (AMLR) is a new set of rules targeting financial service providers. Platforms will no longer offer anonymous accounts or accept anonymizing crypto assets like Monero (XMR) and ZCash (ZEC).
The European Crypto Initiative (EUCI) is pointing to the widening and stricter regulations for EU crypto users. The Read MiCA with EUCI booklet contains more details on the potential requirements for service providers.
Currently, EU brokerages require KYC filings, with extremely limited services for anonymous accounts. Additionally, EU brokerages and exchanges follow the travel rule, aiming to establish a country of origin.
Users also have to disclose the main address they use to interact with the exchange and flag the wallet as linked to their identity. This also means deposits from third parties may be flagged. For now, users only need to declare the sender’s wallet belongs to them, but the rule severely restricts attempts to hide crypto funds or fund exchange accounts from unknown external wallets.
Crypto services will be treated similarly to banks, with requirements to perform due diligence on incoming funds. There are no clear instructions on tracking wallets, but exchanges can gain access to chain tracking services like Chainalysis or AI tools to assess risk. The detailed tracking of user wallets and the origin of funds should be completed by 2030.
EU outlines 13 main points for crypto transfers and trades
Any updates of EU rules for transactions and trading will still use the MiCA regulation as their main framework. However, implementation may add more details, changing the activities of platforms and brokerages.
KYC and business screening transactions may become more detailed for any transfers above 1,000 EUR. It would be up to firms to manage cross-border transfers, screen self-custodied wallets, and use technology to flag suspicious activity.
As of May 2025, MiCA implementations are in various stages of allowances for legacy cases, ranging from 6 to 18 months. For some market operators, stricter regulations and the removal of assets may start as early as 2025.
For Malta, the grace period is as long as 18 months, potentially allowing the usage and swapping of unregulated stablecoins for limited operations. Currently, EU-based service providers allow high swapping limits for verified personal documents, bank accounts, and in some cases, proof of residence.
Some of the new requirements for crypto services may overlap with bank regulations for AML data. The core regulations are not changing, but their scope and the list of obliged business entities are growing. The changes may affect the providers of crypto ATMs or other services that offer anonymous swaps for cash. Online stores, fintech apps, casinos, or other crypto gateways may also have to deepen their analysis and require more reporting.
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