Italy's Central Bank Orders Crypto Transfer Sanctions Checks for All Transactions

Italy's central bank has made it significantly more complicated for crypto firms operating in the country. Banca d'Italia issued a directive on September 7, requiring every single cryptocurrency transfer to be screened against sanctions lists. This means no minimum transaction value can avoid being checked.

The directive is based on European Banking Authority guidelines that took effect in Italy on December 30, 2025. The core requirement is for crypto-asset service providers (CASPs) and payment service providers (PSPs) to screen both the originator and beneficiary information on every cryptocurrency transfer.

Unlike traditional payment service providers, which have had exceptions for instant payments, CASPs do not get to duck under a minimum transaction value. The Banca d'Italia made it clear that these exceptions do not extend to crypto transfers managed by CASPs.

CASPs that fail to meet these requirements face both administrative and criminal penalties under Italian law. This latest directive doesn't introduce new sanctions or create new legal obligations, but rather serves as a reminder from the central bank that existing rules must actually be followed.