[EU Regulation 2024/1624] Huge Implications for Monero, Wallets & KYC in Crypto
The EU passed a anti-money laundering regulation last year (Regulation (EU) 2024/1624) and it has major implications for anyone using crypto currency (especially privacy coins), self-hosted wallets, or running crypto services. The new rules ban crypto service providers from offering or supporting anonymous crypto accounts. That includes coins like Monero (XMR) and other privacy-focused assets. If you’re located within the EU, don’t expect to buy, sell, or store Monero through any regulated exchange or service once the Regulation is in full effect .
Self-hosted wallets aren’t banned (yet), they’re just under the spotlight. If you move crypto from a self-custodied wallet to a centralized exchange, the provider will need to know who you and the counterparty are located, where the money is going and originate from, and have more stringent monitoring as it travels to the next user. Effectively: still legal, but expect a lot friction.
KYC is now mandatory across the board. All crypto service providers MUST perform full identity verification, monitor transactions, and apply enhanced checks when things look suspicious. If you’ve been using an anonymous account, you’ll be required to verify identity before using it again.
The law officially came into force on July 9, 2024. The main provisions start applying on July 10, 2027. Some smaller additional providers have until July 10, 2029.
TL;DR
Monero & privacy coins: are banned from regulated services
Self-hosted wallets: allowed, but under close monitoring and scrutiny
KYC: mandatory for all crypto accounts
Enforcement: July 2027 for most, 2029 for the remaining
The following link contains the official information regarding the regulation.