Italy's central bank mandates sanctions screening for crypto transfers
The Banca d'Italia requires cryptocurrency service providers to implement internal controls to block transactions linked to sanctioned entities across the EU.
Italy's central bank, the Banca d'Italia, has ordered mandatory sanctions screening for all cryptocurrency transfers within its jurisdiction. The announcement came on Monday, directing cryptocurrency asset service providers to establish policies and internal controls specifically for enforcing European Union financial sanctions. Providers must now ensure adequate procedures exist to identify customers and transactions connected to sanctioned entities.
These measures target the growing use of digital assets by Iranian and Russian actors to bypass traditional banking restrictions. Blockchain data indicates significant transaction volumes involving sanctioned stablecoins, with figures reaching $110 billion between 2025 and mid-2026 for specific ruble-backed tokens. Additionally, Iran's central bank has reportedly relaxed foreign currency regulations to facilitate cryptocurrency usage via local exchanges for cross-border settlements.
International enforcement continues alongside these regional developments. US Treasury Secretary Scott Bessent confirmed recent directives freezing over $130 million in digital assets held in wallets tied to Iranian officials. Earlier this year, blockchain firm TRM Labs identified flows exceeding $3.8 billion between exchange CoinEx and sanctioned Iranian entities across a seven-year period.
