Italy’s central bank orders sanctions screening for every crypto transfer

Crypto firms are expected to review their sanctions controls to ensure every applicable transfer undergoes the required screening.

Banca d’Italia has warned crypto-asset service providers (CASPs) that sanctions screening must be carried out on every individual crypto transfer, regardless of its value, in a new communication on compliance with EU and national restrictive measures. Firms must check information on both the originator and beneficiary before executing a transaction.

The central bank has specifically instructed operators not to configure internal systems with a minimum transaction threshold that could allow smaller transfers to escape automated screening. The requirement is intended to ensure sanctions controls are applied consistently, including to low-value transactions.

The guidance does not introduce a new sanctions obligation. Banca d’Italia said the requirements stem from European Banking Authority guidelines that have applied in Italy since 30 December 2025. Unlike certain instant-payment arrangements available to payment service providers, the relevant exception does not apply to crypto transfers handled by CASPs.

Italian crypto firms are therefore expected to review their screening systems, sanctions-list updates and alert procedures to ensure controls operate across all applicable transactions. MiCA authorisation does not replace these separate obligations under EU restrictive-measures rules.