Crypto Privacy Laws: What’s Banned, What’s Allowed, and Who’s Watching

When you think of crypto privacy laws, rules that control how anonymous cryptocurrency transactions can be. Also known as crypto anonymity regulations, these rules are reshaping who can use certain coins and where. It’s not about hiding money anymore—it’s about whether the law lets you hide at all. In 2025, governments aren’t just asking exchanges to know their users—they’re demanding that entire coin types be blocked if they can’t be traced.

Take Monero, a privacy-focused cryptocurrency designed to obscure sender, receiver, and transaction amount. Once a favorite for those who valued true anonymity, it’s now banned on Binance, Kraken, and Coinbase. Why? Because of the FATF Travel Rule, a global standard requiring crypto platforms to share user data for transactions over $1,000. Monero breaks that rule by design. Same goes for Zcash, a coin that lets users choose between transparent and shielded transactions. Even its shielded option is now flagged by Chainalysis and Elliptic as high-risk. Regulators don’t care if you’re using it to protect your freedom—they care if criminals use it. And that’s enough to get it banned.

It’s not just about the coins. AML compliance, the set of rules forcing crypto services to detect and report suspicious activity. is now baked into every exchange license—from New York’s BitLicense, a strict crypto business permit requiring KYC, capital reserves, and cybersecurity controls. to Indonesia’s OJK DFA framework and the EU’s MiCA regulation. If you run a wallet, exchange, or DeFi platform, you’re legally required to collect ID, log IP addresses, and freeze accounts tied to privacy coins. No exceptions. No gray area.

And the trend isn’t slowing. Countries like Russia now freeze accounts for crypto-to-fiat withdrawals over 50,000 rubles. South Korea blocks arbitrage to control price gaps. Even decentralized projects are being forced to add KYC just to stay listed. The era of untraceable crypto is over. What’s left are two paths: either accept the new rules and trade on compliant platforms, or risk losing access entirely. The choice isn’t about tech anymore—it’s about where you stand in this new legal landscape.

Below, you’ll find real breakdowns of what’s banned, who’s enforcing it, and how privacy coins are fighting back—or fading out. No fluff. Just what’s happening, right now, in the real world of crypto regulation.