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.
“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.”
“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.
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).
Earlier this week, the prime minister confirmed his party was looking to make changes to its controversial slashing of winter fuel payments to pensioners at an upcoming “fiscal event”.
Little clarity was provided on when this would be – the budget in the autumn thought the most likely.
Image: Angela Rayner says she wants the changes announced soon. Pic: PA
Ms Rayner has now suggested the 11 June spending review in just over a fortnight is her preferred date.
She told Sky News: “I think that we’ve got the upcoming spending review, and I’m sure that the chancellor will set it out when we’ve got the opportunity – at the first opportunity Trevor she will set out what we’ll be able to do.”
Asked if changes might be announced at the review, Ms Rayner said: “I hope so, but I don’t know. But I hope so.
“I mean, the prime minister’s announced it, so logically to me that indicates that the prime minister wants to do something in this area.
“And if the prime minister wants to do that, I’m sure the chancellor is going to look at how we can achieve that.”
Some might suggest Ms Rayner’s stance was a bid to push Downing Street into an announcement faster than it previously wanted.
It would add to rumours the deputy prime minister is unhappy with the way Sir Keir and Rachel Reeves are running the government.
However, when asked by Trevor Phillips if she wanted to lead her party, Ms Rayner was unequivocal.
“No. I’m very happy and honoured to be deputy prime minister of this country,” she said.
“And I’ve got a lot in my in-tray to prove that I can do the job that I’m doing and deliver on the milestones for the people in this country.”
She continued: “I have no desire to go for the leadership of the Labour Party.”
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Asked to say the word “never”, Ms Rayner repeated “never”.
Ms Rayner also confirmed a leak inquiry was under way after her proposals on tax and spend sent to the chancellor ended up published in The Daily Telegraph.
This weekend, it has become clear there is a price to pay for Sir Keir Starmer’s decision to row back on winter fuel payment cuts.
One MP said in a text message: “We all want to see more”, while former prime minister Gordon Brown told Sky News this week the two-child benefit cap was “pretty discriminatory” and could be scrapped.
Image: Nigel Farage is expected to call for the two-child benefit cap to be scrapped
The cap, which prevents parents from claiming child tax credit or universal credit for more than two children, is a symbolic sore for Labour that saw seven MPs suspended from the party last year.
Now it’s back to cause more trouble.
A Downing Street source suggests little has changed in the last week, and looking at the cap has always been part of the (now delayed) Child Poverty Strategy.
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1:22
‘You’ve got to be fair to pensioners’
But, beyond the whispers behind the scenes, one thing has overtly changed this weekend – growing pressure from Nigel Farage.
Mr Farage is parking his tanks on Labour’s lawn, trying to tap into working-class votes on uncomfortable territory for Mr Starmer.
How would they pay for it? A combination of closing asylum hotels, cutting aid, and scrapping net-zero targets, the party says.
Image: Conservative leader Kemi Badenoch
Headline-grabbing move
The beauty of not being in power is not having to make all the sums add up right now, and it is a headline-grabbing announcement that will, at the very least, reignite the conversation about the two-child cap.
It’s also a reminder that Reform UK, who were beaten by Labour in 89 out of the 98 constituencies they came second in last year, have set their sights beyond the Conservatives.
As for the Tories, who introduced the measure in 2017, leader Kemi Badenoch is clear, saying: “If you can’t afford to have lots of children, then you shouldn’t do so”.
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1:26
Deputy Prime Minister Angela Rayner is hoping for an update on the winter fuel allowance
Blue water between Tories and Reform UK
So, there is blue water between the Conservatives and Reform, but it’s the prime minister and his party that Nigel Farage is targeting now, and Labour is unclear on where it stands.
With the spending review fast approaching, Sir Keir and Chancellor Rachel Reeves will be working out the actual cost, beyond the political one, of rowing back on winter fuel payment cuts.
But will the anger that the policy ignited among some Labour MPs end there? Or will it move to another uncomfortable subject?
As one MP puts it: “If there’s money for pensioners, why not children?”
Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.
The move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, according to a May 25 report by local news outlet 24NewsHD TV Channel.
In the first phase, the government plans to channel excess power into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb said the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.
The initiative’s second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.
Pakistan unveils tax incentives to attract investors
Per the report, interest from international Bitcoin (BTC) miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships.
To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.
Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, reportedly welcomed the development, calling it a “turning point” for the country’s digital economy.
Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors.
The meeting included lawmakers, the Bank of Pakistan’s governor, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.
The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.
Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.
Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: Chainalysis
Data from Statista also shows Pakistan’s crypto market is “experiencing rapid growth,” estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.