The European Union just updated its anti-money laundering (AML) rules [Regulation (EU) 2024/1624], and here is what you need to know: starting in July 2027, regulated crypto companies won’t be allowed to support privacy coins anymore. On the bright side, if you’re just sending Bitcoin between your own private wallets, you don’t have to worry about any new ID requirements. Also, keep in mind there’s now a €10,000 limit on cash payments across the board.
Privacy coins targeted, not Bitcoin
The regulation explicitly prohibits anonymous crypto accounts and services that allow transaction anonymization or increased obfuscation, including those involving anonymity-enhancing cryptocurrencies. That means crypto-asset service providers operating in the EU (exchanges, custodians, and other regulated entities) can no longer list, hold, or facilitate transactions involving assets like Monero, Zcash, or Dash once the rules take effect.
And here’s a good thing. The legislation does not, however, prohibit individuals from owning or privately using those crypto assets. The ban applies only to regulated intermediaries, not to users holding or transacting in privacy coins directly. For instance, Bitcoin transfers between private wallets, meanwhile, remain outside the scope of AML checks.
Basically, these ID rules only apply to crypto companies, not to every single transaction. If you’re moving crypto directly between your own private wallets, you don’t need to worry about them.
The new EU crypto compliance landscape
The regulation, which will take effect on July 10, 2027, introduces a tiered approach to crypto transaction oversight. Regulated crypto businesses must conduct full customer due diligence for occasional crypto transactions of €1,000 (around $1,150) or more. For transactions below that threshold, providers must still identify customers but are not required to complete the same level of verification applied to larger transactions or ongoing business relationships.
There’s also the ‘Travel Rule’ (Regulation (EU) 2023/1113), which means regulated platforms have to pass along sender and receiver details for crypto transfers. If you’re moving money involving self-hosted wallets and a middleman, and the amount is more than €1,000, they’ll need to run some extra checks.
The net effect: users transacting through exchanges must complete Know Your Customer (KYC), while peer-to-peer (P2P) Bitcoin transactions conducted without an intermediary do not trigger direct identity verification requirements under EU law.
Cash and other AML expansions
Beyond crypto, the regulation establishes a harmonized €10,000 ceiling for commercial cash payments across the EU, with individual Member States able to enforce lower limits. For cash transactions of €3,000 (about $3,450) or more, traders and other obligated entities must verify customer identities and perform due diligence.
The regulation also expands the list of entities covered by AML obligations to include professional football clubs, football agents, crowdfunding operators, investment migration businesses, luxury goods dealers, and several other sectors.
Finally, they’re making it harder to hide who really owns a company. New transparency rules mean businesses have to reveal their “true owners” if they own 25 percent or more of the company (or even just 15 percent in some cases). This also applies to trusts and foundations doing business or buying property in the EU.
