{"id":7443,"date":"2026-10-21T15:30:35","date_gmt":"2026-10-21T12:30:35","guid":{"rendered":"https:\/\/legalbit.top\/en\/privacy-coins-legal-status\/"},"modified":"2026-10-23T15:59:30","modified_gmt":"2026-10-23T12:59:30","slug":"privacy-coins-legal-status","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/privacy-coins-legal-status\/","title":{"rendered":"Privacy Coins (Monero, Zcash): Legal Status in the EU, UAE and US"},"content":{"rendered":"\n<div class=\"lbm\"><svg width=\"0\" height=\"0\" style=\"position:absolute\" aria-hidden=\"true\"><symbol id=\"i-list\" viewBox=\"0 0 24 24\"><path d=\"M9 6h11M9 12h11M9 18h11\"\/><path d=\"M4 6h.01M4 12h.01M4 18h.01\"\/><\/symbol><symbol id=\"i-user\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"8\" r=\"4\"\/><path d=\"M4 21c0-4 3.6-7 8-7s8 3 8 7\"\/><\/symbol><symbol id=\"i-ban\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M5.6 5.6l12.8 12.8\"\/><\/symbol><symbol id=\"i-layers\" viewBox=\"0 0 24 24\"><path d=\"M12 3l9 5-9 5-9-5z\"\/><path d=\"M3 13l9 5 9-5\"\/><\/symbol><symbol id=\"i-eye\" viewBox=\"0 0 24 24\"><path d=\"M2 12s4-7 10-7 10 7 10 7-4 7-10 7S2 12 2 12z\"\/><circle cx=\"12\" cy=\"12\" r=\"3\"\/><\/symbol><symbol id=\"i-doc\" viewBox=\"0 0 24 24\"><path d=\"M7 3h8l4 4v14H7z\"\/><path d=\"M15 3v4h4M10 12h6M10 16h6\"\/><\/symbol><symbol id=\"i-pen\" viewBox=\"0 0 24 24\"><path d=\"M4 20l4-1 11-11-3-3L5 16z\"\/><path d=\"M14 6l3 3\"\/><\/symbol><symbol id=\"i-alert\" viewBox=\"0 0 24 24\"><path d=\"M12 3l10 18H2z\"\/><path d=\"M12 10v4M12 17.5h.01\"\/><\/symbol><symbol id=\"i-bulb\" viewBox=\"0 0 24 24\"><path d=\"M9 18h6M10 21h4\"\/><path d=\"M12 3a6 6 0 0 0-3.5 10.9c.6.5 1 1.2 1 2.1h5c0-.9.4-1.6 1-2.1A6 6 0 0 0 12 3z\"\/><\/symbol><symbol id=\"i-info\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 11v5M12 8h.01\"\/><\/symbol><symbol id=\"i-coin\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M14.5 9.5c-.5-1-1.5-1.5-2.5-1.5-1.4 0-2.5.8-2.5 2s1.1 1.6 2.5 2 2.5.8 2.5 2-1.1 2-2.5 2c-1 0-2-.5-2.5-1.5M12 6.5v11\"\/><\/symbol><symbol id=\"i-clock\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 7v5l3 2\"\/><\/symbol><symbol id=\"i-globe\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M3 12h18M12 3c2.5 2.7 3.8 5.7 3.8 9s-1.3 6.3-3.8 9c-2.5-2.7-3.8-5.7-3.8-9S9.5 5.7 12 3z\"\/><\/symbol><\/svg><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\">Holding a privacy coin is generally not prohibited. The restrictions hit the businesses that deal in it: exchanges, custodians, brokers. In the EU the ban starts on 10 July 2027; in the DIFC (Dubai) it applies already. We go through the rules in the EU, the UAE (United Arab Emirates) and the US and what they mean for listing these coins.<\/p><p class=\"lbm-verified\">Checked on 21 October 2026. Rules and sources are current as of this date.<\/p><ul class=\"lbm-toc\"><li><a href=\"#def\">What counts as a privacy coin<\/a><\/li><li><a href=\"#eu\">EU<\/a><\/li><li><a href=\"#uae\">UAE<\/a><\/li><li><a href=\"#us\">US<\/a><\/li><li><a href=\"#compare\">Comparison<\/a><\/li><li><a href=\"#choose\">What a business should do<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div><\/section><section id=\"def\"><h2>What counts as a privacy coin<\/h2><p style=\"max-width:70ch\">The law does not name Monero or Zcash. It describes a feature. In Regulation (EU) 2024\/1624 (AMLR), anonymity-enhancing coins are crypto-assets with built-in features designed to make crypto-asset transfer information anonymous, either systematically or optionally. So the definition covers not only Monero but any token where anonymity can be switched on as an option.<\/p><\/section><section id=\"eu\"><h2>EU: a ban from 10 July 2027<\/h2><p style=\"max-width:70ch\">Article 79(1) AMLR prohibits credit institutions, financial institutions and crypto-asset service providers (CASPs) from keeping anonymous crypto-asset accounts and any account allowing the anonymisation of the account holder or the anonymisation or increased obfuscation of transactions, including through anonymity-enhancing coins.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><h3>Who is covered<\/h3><p>CASPs: exchanges, custodians, brokers. The ban is addressed to them, not to private holders of coins.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><h3>From when<\/h3><p>The Regulation applies from 10 July 2027 (Article 90). Until then the AMLR does not apply.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Self-hosted wallets<\/h3><p>Recital 160 says the ban does not apply to providers of hardware and software or providers of self-hosted wallets insofar as they do not possess access to or control over those wallets.<\/p><\/div><\/div><\/section><section id=\"uae\"><h2>UAE: the DIFC prohibits it now<\/h2><p style=\"max-width:70ch\">Rule GEN 3A.2.2 of the DFSA (Dubai International Financial Centre regulator) Rulebook prohibits dealing in privacy tokens in or from the DIFC. The rule was made in 2022 and amended in 2024 and 2025.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>What is prohibited<\/h3><p>Carrying on a financial service relating to a privacy token or involving a privacy device, making or approving a financial promotion, and offering a privacy token to the public.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Funds and derivatives<\/h3><p>No managing a fund that invests in a privacy token, acting as its trustee, or dealing in derivatives relating to such a token.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>An important caveat<\/b><p>This is a rule of the DIFC regime and the DFSA. The rules of other emirates and free zones differ and must be checked separately.<\/p><\/div><\/div><\/section><div class=\"lbm-svc\"><div><b>Need help with this topic?<\/b><p>We will review your situation and propose a solution for your project.<\/p><\/div><a class=\"lbm-svc-btn popmake-4929\" href=\"#\" role=\"button\">Contact us<\/a><\/div><section id=\"us\"><h2>US: the Tornado Cash case<\/h2><p style=\"max-width:70ch\">The US has no general ban on privacy coins like the EU&#8217;s. The well-known case concerned a mixer, not a coin. OFAC added Tornado Cash to its sanctions list in August 2022.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>The court decision<\/h3><p>On 26 November 2024 the Fifth Circuit held that Tornado Cash&#8217;s immutable smart contracts are not &#8220;property&#8221; under IEEPA (US International Emergency Economic Powers Act), because they cannot be owned: no one can control, change or remove them.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><h3>Delisting<\/h3><p>On 21 March 2025 the US Treasury removed the sanctions on Tornado Cash. Its press release cited a review of novel legal and policy issues and said it remains concerned about North Korean hackers and money laundering with digital assets.<\/p><\/div><\/div><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Takeaway for business<\/b><p>The decision concerns a mixer and immutable code. It does not answer how US regulators would treat an exchange that lists Monero. AML (anti-money laundering) and sanctions rules apply to the business as before.<\/p><\/div><\/div><\/section><section id=\"compare\"><h2>Comparison of approaches<\/h2><p style=\"max-width:70ch\">Based on the AMLR text, the DFSA Rulebook and the Fifth Circuit decision.<\/p><div class=\"lbm-cmp\"><table><thead><tr><th><\/th><th>EU<\/th><th>DIFC (Dubai)<\/th><th>US<\/th><\/tr><\/thead><tbody><tr><th scope=\"row\">Source<\/th><td>Regulation 2024\/1624, Art. 79<\/td><td>DFSA Rulebook, GEN 3A.2.2<\/td><td>Van Loon v. Treasury, 5th Cir.<\/td><\/tr><tr><th scope=\"row\">Who is covered<\/th><td>CASPs and financial institutions<\/td><td>Firms in or operating from the DIFC<\/td><td>Sanctions on a mixer (OFAC)<\/td><\/tr><tr><th scope=\"row\">What is prohibited<\/th><td>Accounts allowing obfuscated transactions, including via privacy coins<\/td><td>Services, promotions, offers and funds involving privacy tokens<\/td><td>No general ban on coins<\/td><\/tr><tr><th scope=\"row\">From when<\/th><td>10 July 2027<\/td><td>In force (2022 rule)<\/td><td>Sanctions removed 21 March 2025<\/td><\/tr><tr><th scope=\"row\">Private holders<\/th><td>Not addressed<\/td><td>Not addressed<\/td><td>No ban<\/td><\/tr><\/tbody><\/table><\/div><\/section><section id=\"choose\"><h2>What a business should do<\/h2><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#i-globe\"\/><\/svg><\/span><div><h3>Map your jurisdictions<\/h3><p>Check where you are licensed and where your clients are. For the DIFC the ban applies now, for the EU it starts on 10 July 2027.<\/p><span class=\"lbm-tag\">Start here<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><div><h3>Plan the delisting<\/h3><p>If you list privacy coins, prepare a schedule: client notice period and the process for withdrawing assets.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><div><h3>Check the developer role<\/h3><p>The AMLR recital exempts wallet providers without control over client keys. Check that your setup really works that way.<\/p><\/div><\/li><\/ol><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Common mistakes<\/b><p>Assuming the ban covers private individuals: Article 79 is addressed to service providers. Going by headlines rather than the text of the law: the Regulation does not name Monero, the test is functional. Mixing up mixers and privacy coins: the Tornado Cash decision does not settle listing questions. Applying the DIFC rule to the whole country.<\/p><\/div><\/div><\/section><figure class=\"lbm-pull\"><q>The law looks not at the name of the coin but at whether a transfer can be traced.<\/q><cite>The LegalBit team<\/cite><\/figure><section id=\"faq\"><h2>FAQ<\/h2><div class=\"lbm-faq\"><details><summary>Is Monero banned in the EU?<\/summary><p>Holding it is not prohibited. From 10 July 2027 crypto-asset service providers in the EU may not keep accounts allowing obfuscated transactions, including through anonymity-enhancing coins.<\/p><\/details><details><summary>Does the ban affect wallets?<\/summary><p>Under the AMLR recital the ban does not apply to providers of self-hosted wallets and software developers who have no access to or control over the wallet.<\/p><\/details><details><summary>Can Monero be listed in Dubai?<\/summary><p>Not in the DIFC: rule GEN 3A.2.2 prohibits financial services relating to privacy tokens. Other emirates have different rules.<\/p><\/details><details><summary>Did the Tornado Cash decision legalise privacy coins in the US?<\/summary><p>No. The court held that immutable smart contracts are not property under IEEPA. The decision does not concern listing coins.<\/p><\/details><\/div><p class=\"lbm-more\"><b>See also: <\/b><a href=\"\/en\/travel-rule-crypto\/\">Travel Rule for Crypto Businesses<\/a>; <a href=\"\/en\/what-is-know-your-customer-kyc-and-why-is-it-essential-for-cryptocurrency-exchanges\/\">What is Know Your Customer (KYC) and why is it essential for cryptocurrency exchanges?<\/a>. Services: <a href=\"\/en\/crypto-legal-services\/\">legal services for crypto projects<\/a>.<\/p><div class=\"lbm-src\"><b>Sources<\/b><ul><li><a href=\"https:\/\/eur-lex.europa.eu\/eli\/reg\/2024\/1624\/oj\/eng\" rel=\"nofollow noopener\" target=\"_blank\">Regulation (EU) 2024\/1624 (AMLR): Arts 2(1)(25), 79, 90, recital 160<\/a><\/li><li><a href=\"https:\/\/dfsaen.thomsonreuters.com\/rulebook\/gen-3a21\" rel=\"nofollow noopener\" target=\"_blank\">DFSA Rulebook, GEN 3A.2.1<\/a><\/li><li><a href=\"https:\/\/dfsaen.thomsonreuters.com\/rulebook\/gen-3a22\" rel=\"nofollow noopener\" target=\"_blank\">DFSA Rulebook, GEN 3A.2.2<\/a><\/li><li><a href=\"https:\/\/www.ca5.uscourts.gov\/opinions\/pub\/23\/23-50669-CV0.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Van Loon v. Department of the Treasury, No. 23-50669 (5th Cir., 26 November 2024)<\/a><\/li><li><a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0057\" rel=\"nofollow noopener\" target=\"_blank\">U.S. Department of the Treasury: Tornado Cash Delisting (21 March 2025)<\/a><\/li><\/ul><\/div><\/section><\/div>\n\n\n\n<div class=\"lb-ac\"><h2>This is what we do<\/h2><p>How we help projects with this topic:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/regulatory-and-compliance\/\">Licensing, compliance and AML\/KYC<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/crypto-legal-services\/\">Legal services for crypto projects<\/a><\/li><\/ul><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"Privacy Coins (Monero, Zcash): Legal Status in the EU, UAE and US\", \"description\": \"Are privacy coins legal: the AMLR ban for CASPs from 10 July 2027, DIFC rule GEN 3A.2.2 and the Tornado Cash case in the US. 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