EU to Ban Monero and Zcash by 2027: What Privacy Coin Holders Need to Know

Privacy coins are about to disappear from EU exchanges

Starting July 1, 2027, you won’t be able to buy, sell, or trade Monero or Zcash on any exchange registered in the European Union. It’s not a rumor. It’s not a proposal. It’s the law.

The EU’s new Anti-Money Laundering Regulation (AMLR), formally adopted in May 2024, makes it illegal for any crypto service provider in the bloc to handle privacy coins. This isn’t a minor tweak. It’s a full-scale removal of tools designed to hide transaction details - and Monero and Zcash are the biggest targets.

Why now? Because regulators say these coins make it too easy to move money without a trace. And in a system built on transparency, that’s unacceptable.

How the ban actually works

The ban doesn’t target individuals. You won’t go to jail for holding Monero in your wallet. But if you try to cash out through Binance, Kraken, or any other EU-licensed platform after July 2027, they’ll block you. Period.

Article 79 of the AMLR specifically bans "crypto-asset accounts allowing anonymization of transactions". That means any service provider - whether it’s an exchange, a wallet provider, or even a payment processor - must verify every user and track every transfer above €1,000. Privacy coins break that rule by design.

Monero uses ring signatures and stealth addresses to mix your transaction with others, making it impossible to trace where the money came from or where it went. Zcash lets users choose shielded transactions, hiding sender, receiver, and amount entirely. To regulators, that’s not privacy - it’s a backdoor for crime.

These aren’t just technical details. They’re legal dealbreakers. The EU’s new supervisory body, AMLA, will monitor the biggest crypto firms. If you’re handling over €50 million in crypto or serving tens of thousands of users, you’re on their radar. And you’ll be forced to cut off privacy coins or lose your license.

What happens to your coins?

If you own Monero or Zcash right now, you’re not forced to sell. But you’re locked out of the EU’s regulated financial system. You can’t deposit them into your Revolut or N26 crypto account. You can’t use them to pay for services through EU-based platforms.

There’s one loophole: decentralized exchanges (DEXs) and peer-to-peer trading. If you use a non-EU platform like Bisq, Hodl Hodl, or a wallet that doesn’t require KYC, you can still move your coins. But that’s risky. These platforms aren’t protected by EU law. If something goes wrong, you have no recourse.

Some users are already moving their holdings to non-EU exchanges. Others are converting to Bitcoin or Ethereum before the deadline - not because they want to, but because they have to if they want to cash out in euros.

Why Monero and Zcash? Why not Bitcoin?

Bitcoin transactions are public. Every transfer is recorded on a blockchain anyone can view. While addresses aren’t tied to names by default, analysts can trace patterns, link wallets to exchanges, and often identify users through metadata. That’s why Bitcoin is still allowed.

Monero and Zcash were built to break that chain. They don’t just obscure details - they erase them. That’s why regulators call them "anonymity-enhancing coins." It’s not about volume. It’s about design.

Even Dash, another privacy coin, is included in the ban. But Monero and Zcash are the most widely used. They’re the ones that matter.

What does this mean for the future of crypto in Europe?

The EU is sending a clear message: if you want to operate here, you play by our rules. Transparency isn’t optional. Privacy is a privilege - and it’s being revoked for crypto.

This move is part of a larger package called MiCA (Markets in Crypto-Assets), which brings crypto under the same rules as banks. Stablecoins, DeFi protocols, NFT marketplaces - all must comply. Privacy coins are the only major category being outright banned.

It’s a win for regulators. It’s a loss for privacy advocates. And for everyday users? It’s a forced choice: give up anonymity or give up easy access to your money.

Will other countries follow?

Yes. The EU is setting the global standard. The U.S. has already cracked down on privacy coins through enforcement actions against exchanges. The UK is tightening rules. Australia is reviewing similar bans.

What the EU did here isn’t just about money laundering. It’s about control. If you can’t track a transaction, you can’t tax it, freeze it, or audit it. And for governments used to controlling money flows, that’s a threat.

Other regions may not copy the EU exactly, but they’ll copy the logic. If privacy coins can’t be traced, they’re too dangerous to allow.

What should you do now?

You have two years. That’s not a lot, but it’s enough to plan.

• If you hold Monero or Zcash and plan to cash out in euros, convert them before mid-2027. Use a regulated exchange while you still can.
• If you want to keep your coins long-term, store them in a non-custodial wallet and avoid EU-based platforms. Know the risks.
• If you run a crypto business, audit your systems now. Remove privacy coin support. Update your KYC policies. Get compliant or get out.
• If you’re a trader, expect volatility. Prices may drop as demand from EU users declines. Don’t panic, but don’t ignore the timeline.

This isn’t the end of privacy coins. It’s the end of their place in the EU’s financial system. They’ll still exist. They’ll still be traded - just not where most Europeans live and work.

The bigger question: Is privacy a right or a risk?

Privacy advocates say financial privacy is a human right. They argue that just because some criminals use privacy coins doesn’t mean everyone should be punished.

Regulators say the same logic would let anyone open a secret bank account. And in a world where terrorist financing and drug cartels use crypto, they can’t afford to leave gaps.

The truth? Both sides have a point. But in the end, the law doesn’t care about philosophy. It cares about enforcement. And the EU has decided that privacy coins are too hard to enforce against.

By 2027, the EU will have one of the most transparent crypto markets in the world. But it will also be one where financial anonymity is no longer an option - not even for those who value it most.