Banca d'Italia Slams Crypto Firms on Sanctions Screening

Italian crypto-asset service providers (CASP) have been reminded by Banca d'Italia to verify that every transfer passes through sanctions screening, regardless of its value. This requirement has been in place since December 30, 2025, and is based on European Banking Authority guidelines.

The central bank warned firms against setting a minimum transaction threshold within their screening systems, as this could allow small crypto transfers to avoid automated checks. CASPs must screen information about both the sender and recipient before executing a crypto transfer, and use automated systems that compare customer and transaction information with applicable sanctions lists.

Banca d'Italia's reminder follows an expansion of European Union restrictive measures and growing regulatory attention on whether financial institutions can enforce sanctions effectively in daily operations. The central bank did not announce a new compliance deadline in its September communication, as the applicable EBA requirements are already in force.