AMLA Cracks Down on Privacy Coins and Anonymous Wallets in EU
July 21, 2025
The EU’s newly formed Anti-Money Laundering Authority warns VASPs of stricter compliance obligations and immediate bans on privacy coins and anonymous wallets under its updated regulatory mandate.
This new authority will be responsible for implementing stricter compliance requirements, with cryptocurrency services identified as the “top money-laundering threat” in Europe.
With this recent shift, the Chair of AMLA, Bruna Szego, in an interview with Financial Times, said,
“It is essential that, in the light of a new regulatory framework and major transformation of the crypto-assets sector, Europe is adequately protected from the risks of money laundering and terrorist financing stemming from this sector.”
She also added that European organizations must tighten their security protocols to scrutinize the beneficial ownership of crypto firms, ensuring that the owners are not involved in money laundering.
According to the new AML regulations released on July 7th, privacy coins and anonymous wallets will not be accommodated and will be immediately banned by the VASPs.
AMLA is operating from Frankfurt and has been fully functional since July 1, 2025. The aim of this new authority is to supervise the 40 major high-risk financial institutions in 2028, which includes crypto firms.
The authority has given this agenda the name “immediate priority” for the current year. The primary target will be to identify inconsistencies in VASPS across the state. To achieve this, national regulatory authorities and financial intelligence units will assist the organization in identifying and tracking cross-border crypto risks.
AMLA focuses on anti-money laundering and terrorist financing, while MiCA sets rules for licensing, governance, and transparency in crypto. Together, they form a complete framework for the crypto sector. MiCA tells crypto firms how to operate. AMLA checks if they are following financial crime rules. This indicates that the EU seeks to exert substantial control without hindering innovation.
Also Read: Members of European Parliament Vote for the Plan of EU-wide Digital Identity Wallet
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