The European Union is set to impose sweeping Anti-Money Laundering (AML) rules that will ban privacy-preserving tokens and anonymous cryptocurrency accounts from 2027.

Under the new Anti-Money Laundering Regulation (AMLR), credit institutions, financial institutions and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies, such as Monero (XMR) and Zcash (ZEC).

“Article 79 of the AMLR establishes strict prohibitions on anonymous accounts […]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts,” according to the AML Handbook, published by European Crypto Initiative (EUCI).

The AML Handbook. Source: EUCI

The regulation is part of a broader AML framework that includes bank and payment accounts, passbooks and safe-deposit boxes, “crypto-asset accounts allowing anonymisation of transactions,” and “accounts using anonymity-enhancing coins.”

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“The regulations (the AMLR, AMLD and AMLAR) are final, and what remains is the ‘fine print’ — aka the interpretation of some of the requirements through the so-called implementing and delegated acts,” according to Vyara Savova, senior policy lead at the EUCI.

She added that much of the implementation will come through so-called implementing and delegated acts, which are mostly handled by the European Banking Authority:

“This means that the EUCI is still actively working on these level two acts by providing feedback to the public consultations, as some of the implementation details are yet to be finalized.”

“However, the broader framework is final, so centralized crypto projects (CASPs under MiCA) need to keep it in mind when determining their internal processes and policies,” Savova said.

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EU to increase oversight of crypto service providers

Under the new regulatory framework, CASPs operating in at least six member states will be under direct AML supervision.

In the initial stage, AMLA plans to select 40 entities, with at least one entity per member state, according to EUCI’s AML Handbook. The selection process is set to start on July 1, 2027.

AMLA will use “materiality thresholds” to ensure that only firms with “substantial operations presence in multiple jurisdictions are considered for direct supervision.”

The thresholds include a “minimum of 20,000 customers residing in the host member state,” or a total transaction volume of over 50 million euros ($56 million).

Other notable measures include mandatory customer due diligence on transactions above 1,000 euros ($1,100).

These updates come as the EU ramps up its regulatory oversight of the crypto industry, building on previous measures such as the Markets in Crypto-Assets Regulation (MiCA).

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Crypto exchange KuCoin said that it may reenter South Korea after its platform was blocked in the country. 

On March 21, South Korean regulators ordered Google Play to block access to exchanges that were not compliant with the requirements needed to operate in the country. On April 11, South Korea’s Financial Services Commission (FSC) ordered the Apple Store to block unregistered crypto exchanges. 

KuCoin was among those affected by the country’s crackdown on unregistered platforms that were previously available. While the platform is now unavailable to South Koreans, it has not fully abandoned the jurisdiction. 

In an exclusive interview with Cointelegraph, KuCoin’s newly appointed CEO, BC Wong, said that the crypto exchange has plans to reenter the country. 

Wong (left), KuCoin EU CEO Oliver Stauber (middle) and Cointelegraph reporter Ezra Reguerra (right) at the Token2049 event in Dubai. Source: Market Across

Regulators drive global players away from local markets

Wong told Cointelegraph that before the exchange can reenter South Korea, it plans to secure compliance with major jurisdictions first. He said: 

“The resource is there. We need to go one by one. Our strategy will always be that major jurisdictions come first, which means the United States, EU, China, India, and maybe after that, Australia.”

Wong confirmed to Cointelegraph that KuCoin representatives had started speaking with regulators. The executive said that operating in crypto is very similar to traditional financial markets, where there’s a need for a clear background in each jurisdiction. 

The KuCoin CEO also said that regulators are stricter compared to three years ago. He said that this could be a move to drive global players away from local crypto markets. 

“I’m not so sure that if the regulators’ intention is to regulate the global market or just simply, they want to pave the way to get all the global kind of players to be out from their market, and pave the road for their domestic exchange,” Wong added. 

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KuCoin’s EU CEO shares regulatory challenges in Europe

Oliver Stauber, who joined KuCoin as its European Union CEO, told Cointelegraph that there are also difficulties operating in the EU, even with the bloc’s Markets in Crypto-Assets Regulation (MiCA) in place. 

Stauber, who previously worked as the chief legal officer of Bitpanda, told Cointelegraph that while MiCA licenses have a passporting feature, which should allow license holders to provide services across the EU, the executive said that some jurisdictions interpret the laws differently. 

Stauber said that some jurisdictions may say that licenses were “wrongly assessed,” which gets in the way of operating in some jurisdictions.  

“MiCA was said to have a level playing field in crypto all over Europe. However, as long as there are players who are not playing by the books, you know it’s getting quite messy and difficult,” Stauber told Cointelegraph. 

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Key points:

Bitcoin long-term holders are about to hit a level of unrealized profit, which has traditionally caused them to sell.

That level coincides with the return to a six-figure BTC price.

Order book data suggests that bulls may not succeed in keeping the upside going.

Bitcoin (BTC) risks a “notable increase” in selling from its older investors if price rises further, warns onchain analytics firm Glassnode.

In the latest edition of its regular newsletter, “The Week Onchain,” researchers calculated that long-term holders (LTHs) are sitting on almost 350% unrealized profits.

Bitcoin sell-side odds in line for crucial test

Bitcoin at multimonth highs will tempt an increasing number of hodlers to take profits — including so-called “diamond hands.”

Using a variety of metrics to track investor profitability, Glassnode shows that aggregate LTH unrealized profits are now nearing 350% — a key historical level.

“Having established that the LTH cohort is expressing a preference to hold onto their supply, we can attempt to quantify the potential price levels required to entice them to part with their coins, and commence the next wave of profit taking,” it explains.

LTH refers to entities holding BTC for more than six months. For Glassnode, the key price area to watch for changes in their behavior is the $100,000 zone.

“Historically speaking, the Long-Term Holder cohort typically ramps up their spending pressure when the average member is holding a +350% unrealized profit margin,” it explains.

“Reconciling this information with the spot price, the average LTH is expected to hit a 350% profit margin at the $99.9k level. As such, we can anticipate an uptick in sell-side pressure as the market approaches this zone, making it an area that will likely require substantial buy-side demand to absorb the distribution, and sustain upwards momentum.”Bitcoin LTH profit levels (screenshot). Source: Glassnode

Trader: BTC price upside potential “looks thin”

BTC/USD reached $97,500 this week before cooling off — its highest since Feb. 21, per data from Cointelegraph Markets Pro and TradingView.

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While more than $20,000 above its recent lows, Bitcoin is not yet convincing traders that it can return to classic bull market behavior.

Popular trader TheKingfisher pointed to order book liquidity as one sign that sellers may take revenge on the recovery.

“Massive wall of LONG liquidations stacked up under ~$91k. Shorts above current price ($96.6k)? Barely anything significant,” he wrote in part of an X post on May 1.

“Huge imbalance suggests potential downside magnet is strong. High risk for longs near current levels. Upside fuel looks thin for now.”Bitcoin exchange order book liquidity data. Source: TheKingfisher/X

Glassnode also acknowledged the need to demonstrate key resistance/support flips, referencing the 111-day simple moving average (SMA) and the aggregate cost basis of Bitcoin speculators, known as short-term holders (STHs).

“The price has recently surged above both of these pricing models, and is now attempting to consolidate within this zone. This highlights a noteworthy degree of strength behind this upwards swing,” it commented. 

“However, these are levels that must be broken and held for further price appreciation, as a rejection of this level would push the price back into bearish territory, and return many investors to a state of meaningful unrealized loss.”BTC/USD chart with 11-day SMA, STH realized price. Source: Glassnode

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.