Bank of Italy Requires Sanctions Screening for Every Cryptocurrency Transfer

The Bank of Italy has warned cryptocurrency service providers that every cryptocurrency transfer, regardless of the transaction amount, must undergo sanctions screening, and no minimum transaction threshold can be set to evade automatic screening. This requirement stems from guidelines applicable in Italy from December 30, 2025, issued by the European Banking Authority, and does not introduce new sanctions obligations. The Bank of Italy pointed out that certain exemptions for instant payments by payment service providers do not apply to cryptocurrency transfers. Cryptocurrency firms are required to review their screening systems, update sanctions lists, and alert procedures to ensure coverage of all applicable transactions. The MiCA authorization does not replace these independent obligations under EU restrictive measures rules. This move will increase compliance costs for Italian cryptocurrency firms, necessitating more complex systems to handle transaction alerts and potential sanctions matches.

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