Banca d'Italia Orders Sanctions Screening for Crypto Transfers

Italy's central bank, Banca d'Italia, has ordered crypto asset service providers (CASPs) to screen for sanctions when processing transfers. The move aims to curb illicit flows across the EU.

CASPs must put policies and internal controls in place to enforce EU financial sanctions on cryptocurrency transactions. This includes identifying customers and transactions linked to sanctioned entities.

The decision comes as cryptocurrencies are increasingly being used to avoid financial sanctions. For example, the Russian ruble-backed A7A5 stablecoin processed $110 billion in cumulative transactions between February 2023 and May 2024, despite being targeted by Western sanctions.