EU mandates stricter crypto KYC rules and bans anonymous accounts from 2027

The European Union will introduce a new set of anti-money laundering rules from July 2027 that will also have a significant impact on the crypto market. Regulation (EU) 2024/1624 will require crypto-asset service providers to carry out stricter identity checks, prohibit anonymous accounts and impose a cap of €10.000 on cash payments for goods and services. The rules apply simultaneously in all member states, making them one of the most far-reaching European regulatory steps in the crypto sphere.

KYC mandatory from €1.000

Crypto-asset service providers, also known as CASPs, will soon be required to perform full customer identification for one-off transactions of €1.000 or more. This applies to exchanges, custodians and other regulated crypto companies. For transactions below €1.000. a lighter identification requirement applies: the customer must still be identified, but full verification is not required.

Anonymous crypto accounts will be explicitly prohibited. Services that promote anonymity or obscure transactions, including those linked to so-called privacy coins, may no longer be offered by regulated platforms. It is important to note that owning or privately using privacy-oriented cryptocurrencies is not a criminal offence, but regulated parties are no longer allowed to facilitate, store or offer them on their platforms.

Broader scope of the anti-money laundering rules

The new regulation extends beyond crypto. Sectors such as luxury goods, football clubs, crowdfunding platforms and investment migration services will also fall under the expanded AML framework. The EU aims to tackle money laundering in a wider range of high-risk sectors.

In addition, the legislation strengthens transparency around ultimate beneficial owners, making it clearer who stands behind companies and structures. This fits into the broader European strategy to better combat financial crime. For the crypto sector, which is already dealing with declining funding rounds and a shift toward proven projects, this marks another step towards further institutionalisation and compliance.