Monero (XMR), Zcash (ZEC) and other anonymous cryptocurrencies soon to be banned in Europe?

The European Union (EU) has been looking into the cryptocurrency sector for a few months, with in particular the possible implementation of the MiCA regulations. And it is now anonymous cryptocurrencies that would be targeted: Monero (XMR), Zcash (ZEC) and their consorts could simply be banned in Europe.

Anonymous cryptocurrencies that are no longer welcome in Europe?

Information has leaked at the European Union level, and a plan to modify anti-money laundering rules has been seen by our colleagues at CoinDesk. New rules would be put in place for anonymous cryptocurrencies (privacy coins), such as Monero, Zcash or Dash.

Companies and banking institutions may no longer be authorized to manage and distribute this type of cryptocurrency, according to the document:

Credit institutions, financial institutions and crypto-asset service providers should be prevented from keeping […] pieces that promote anonymityt.»

This document was sent to the 26 Member States of the European Union, with a view to possible adoption.

👉 Find our guide – How to buy Monero (XMR) in 2022?

Avoid anonymous transactions

The apparent hostility of regulators towards anonymous means of payment is not a surprise, but this is the first time that anonymous cryptocurrencies could be banned on such a large scale. These are indeed included in the new draft rules aimed at combating money laundering.

These could lead to a ban on large cash transactions, as well as the creation of a new European agency dedicated specifically to this area, AMLA. For crypto service providers, it would also mean that the $1,000 transaction threshold would be waived. All transactions, regardless of the amount, could be reported.

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The last measure of a long series?

The hunt for anonymity is not specific to cryptocurrencies – institutions and regulators of all persuasions have tended to favor traceable transfer methods in recent years. This is of course in contradiction with part of the philosophy surrounding cryptocurrencies – some judging that it is precisely these rapid and potentially unmonitored transfers that make the interest of the blockchain.

The FTX case should in any case not encourage regulators in Europe and elsewhere to stop their hunt for anonymity. And if the cryptocurrencies in question will of course be available and usable outside of centralized services, this could make their distribution less easy.

👉 To go further – What are anonymous cryptocurrencies?

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Source: CoinDesk

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