Banca d’Italia orders sanctions screening for crypto transfers
Italy’s central bank requires crypto asset service providers to screen transfers and enforce EU financial sanctions with new policies and controls.
Banca d’Italia on Monday ordered mandatory sanctions screening for cryptocurrency transfers, requiring crypto asset service providers (CASPs) to put in place policies and internal controls to apply European Union financial sanctions when processing transfers.
The guidance requires CASPs to adopt procedures to identify customers and transactions linked to sanctioned persons or entities, apply EU sanctions rules to crypto flows and maintain records that allow tracing of transfers involving sanctioned parties. Providers must implement risk-based controls to detect and block transfers and set escalation procedures for suspected breaches.
The central bank’s document highlights customer due diligence, transaction monitoring and staff training as elements of the required controls. CASPs are expected to adjust the scope and intensity of measures to reflect the scale and nature of their services and the risks they face.
The directive follows evidence of digital assets being used to move value across borders while avoiding traditional banking checks. Blockchain security firm CertiK reported that the ruble-backed A7A5 stablecoin processed about $110 billion in cumulative transactions between February 2025 and May 2026 despite being targeted by Western sanctions. The announcement also notes that Iran’s central bank eased foreign currency rules to encourage businesses to settle cross-border trade using tokens such as Tether’s USDT and Bitcoin on Iranian exchanges.
U.S. authorities have taken related actions. On July 14, U.S. Treasury Secretary Scott Bessent announced a freeze of more than $130 million in crypto held in wallets linked to Iran’s central bank. Blockchain analytics firm TRM Labs reported more than $3.8 billion in flows between the exchange CoinEx and sanctioned Iranian entities over more than seven years.
The Banca d’Italia statement did not specify penalties in the announcement but linked the screening requirement to existing supervisory responsibilities for firms operating under Italian jurisdiction.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
