In a move to tighten oversight of digital finance, the European Union is advancing plans to track crypto transactions, aiming to boost transparency and combat financial crime. The initiative was outlined by Eurogroup President Paschal Donohoe, who also serves as Ireland’s Finance Minister, during the European Anti-Financial Crime Summit 2025 in Dublin.
Donohoe emphasized that the proposed framework would enhance transparency by recording transaction data for both senders and receivers across crypto asset service providers (CASPs).
The plan at an EU legislative level is a reclass of performance transfer mechanisms, he said in his keynote. Specifically, to record data on the senders and recipients of funds, [so it] now applies to crypto asset service providers.
He stressed the need to broaden the scope of financial regulation to address gaps in the crypto space and ensure more robust oversight.
Reinforcing the EU’s new anti-money laundering framework
Donohoe also spotlighted the importance of the new EU Anti-Money Laundering Authority (AMLA) and its associated legislative package. The measures are aimed at strengthening the EU’s arsenal against money laundering and terrorism financing.
Closer cooperation and coordination is absolutely critical—not just at an international level, but at a European level. This initiative is a landmark development. What it aims to do is to create a strong toolkit for tackling these deeply serious issues.
The European Commission had previously adopted a regulation in May 2023 targeting fund transfers, which mandates crypto asset transactions be made transparent and fully traceable.
Crypto firms to face stricter AML rules by 2027
As part of the expanded AML regulatory scope, new restrictions will prohibit interactions with anonymous wallets and privacy coins, starting July 1, 2027. Additionally, regulators will have the power to block IP addresses of decentralized exchanges that fail to comply.
These steps represent a significant tightening of the EU’s regulatory stance on crypto-related financial flows.
Not a crypto regulation, but a financial standard
Despite its implications for the crypto industry, the new Anti-Money Laundering Regulation (AMLR) is not being classified as a crypto-specific law.
Patrick Hansen, EU Strategy and Policy Director at Circle, clarified that the AMLR framework is broader and applies to all financial institutions, including but not limited to crypto service providers.
However, industry voices remain cautious. James Toledano, COO of Unity Wallet, warned that such measures could conflict with the core principles of decentralized finance:
These laws match traditional banking standards, but don’t fit well with crypto’s decentralized structure. They can and will be easily circumvented, as self-custodial crypto is truly global and holders will find other ways of cashing out their chips.
