Monero Reclaims Crown as Top Privacy Coin

Monero (XMR) has regained its place as the top privacy-focused cryptocurrency, surpassing Zcash (ZEC) in market value. This change comes amid heightened regulatory scrutiny, particularly following the United Arab Emirates’ announcement of a ban on privacy coins. Interestingly, Monero’s price has surged significantly, gaining attention from investors worldwide. 

Monero Token Reached an All-time High

According to recent data, the XMR token has surged over 44% in just a week and a half, reaching a peak price of almost $680. This sharp increase has propelled Monero to a new all-time high, solidifying its status as the most valuable privacy coin in the market.

Notably, the UAE’s ban on privacy coins may have increased interest rather than discouraging it. Often, when regulations tighten, people show more interest in decentralized and privacy-focused technologies. For many investors, these bans underscore the importance of financial privacy, resulting in increased demand for assets like Monero that resist censorship and monitoring.

Recall that Layer-1 AI-focused blockchain and mining pool Qubic has claimed responsibility for the majority of Monero’s hasrate. In other words, it is the single mining pool with major control over the blockchain. So far, it has reordered six blocks, a move that prompted denials of the attack from the Monero community.

EU Bans Privacy Coins and Anonymous Wallets

In a similar vein, the European Union has taken a significant step to tighten its grip on digital finance. By July 1, 2027, the EU will ban privacy tokens and anonymous crypto wallets. Digital assets such as Monero, Zcash (ZEC), and Dash will no longer be allowed across the region. As reported by TheCoinRise, this decision is part of the newly adopted Anti-Money Laundering Regulation (AMLR).

The rule also aims to stop illegal financial activity and bring more transparency to the cryptocurrency industry. The EU’s updated AMLR leaves no room for crypto assets that hide user identities. The ban does not just target tokens themselves. It also applies to any wallet or account that hides who owns it.

Meanwhile, the move follows recommendations in the European Crypto Initiative’s new AML Handbook, which calls for strict oversight of anonymous financial tools. Undoubtedly, the EU is banning privacy coins to close a big gap in its old rules.

Growing Interest in Privacy Coins

Some market observers believe the Monero rally reflects a broader resurgence of interest in privacy-focused cryptocurrencies. This is because global regulators increase scrutiny over digital assets and encryption technologies.

In October, Monero’s rival, Zcash, saw its price jump from $50 in September to almost $350 a month later. The privacy-focused cryptocurrency’s 30% surge marked a 490% gain, propelling its market capitalization above $5 billion for the first time.