European Union has finalized the Anti-Money Laundering Regulation (AMLR), banning privacy coins like Monero and Zcash by 2027. Meanwhile, the UK's FCA plans to restrict crypto purchases using borrowed funds to reduce consumer risk. Movement Labs has also suspended its co-founder amid concerns over a controversial market maker deal. These shifts highlight the increasing regulatory pressure on the crypto industry worldwide.
The European Union has officially approved the sweeping Anti-Money Laundering Regulation (AMLR), set to take effect in 2027. This landmark legislation imposes a total ban on anonymity-based cryptocurrencies such as Monero (XMR) and Zcash (ZEC) and all unidentified cryptocurrency accounts.
Credit institutions, financial entities, and crypto asset service providers (CASPs) must cease operating anonymous transactions or accounts utilizing anonymity-enhancing coins, marking a significant shift in the regulatory landscape.
Article 79 of the AMLR outlines strict enforcement against anonymity in crypto operations. The European Crypto Initiative (EUCI) published its AML Handbook to state that these regulation changes extend to bank accounts, payment systems, and crypto-asset platforms. Senior policy lead Vyara Savova from EUCI stated the core framework has reached finalization, yet implementing aspects will be determined in subsequent delegated and implementing acts of the European Banking Authority.
AMLA, the newly formed supervisory authority, will oversee the implementation. Starting from July 1st, 2027, the authority will begin direct oversight of 40 CASPs that provide services across at least six EU member states. The required criteria are reaching either 20,000 customer accounts or processing annual transactions that exceed €50 million. The EU extends its current MiCA regulation through these new measures dedicated to boosting crypto sector transparency and compliance.
The United Kingdom’s Financial Conduct Authority (FCA) announced plans to restrict retail investors from using borrowed funds to buy cryptocurrencies. According to the Financial Times, the move is part of broader upcoming rules to reduce consumer risk in the digital asset market.
David Geale, the FCA’s executive director for payments and digital finance, emphasized that crypto remains a high-risk investment. He stated that restricting the use of credit will help protect investors from unsustainable debt. The upcoming rules will also include a ban on credit card purchases for crypto assets, which could block retail access to lending platforms in the space.
FCA data reveals a growing trend in credit-based crypto purchases, from 6% in 2022 to 14% in 2024. The regulator highlighted risks such as market manipulation, settlement failures, and transparency issues, prompting it to propose measures like banning payment for order flow and enforcing trade price transparency.
Movement Labs confirmed the suspension of co-founder Rushi Manche following controversy over a market maker agreement. The decision follows Coinbase’s delisting of MOVE, the native token of the Movement Network, over listing standard violations.
The suspension came after Groom Lake, a private intelligence firm, reviewed a market-making deal between Web3Port and Rentech, brokered by Manche. Web3Port reportedly sold 66 million MOVE tokens obtained in the deal, leading to $38 million in price pressure last December.
The event indicates worldwide concerns over market maker control and alleged market manipulation systems. Similar market manipulation accusations target the trading operations at Wintermute and Jump Crypto while the wider crypto market undergoes regulatory and community oversight of its market-making activities.