Italy’s central bank orders sanctions screening for crypto transfers
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Italy’s central bank, Banca d’Italia, has mandated sanctions screening for cryptocurrency transfers. Crypto asset service providers (CASPs) must implement policies and internal controls to enforce EU financial sanctions when processing crypto transfers. The directive aims to help curb illicit financial flows across the European Union.
Why it matters
The central bank's move addresses growing concerns about cryptocurrencies being used by sanctioned entities, such as those linked to Iran and Russia, to evade financial restrictions. This development could strengthen enforcement of sanctions in the EU crypto market, but the source does not explicitly discuss broader market or user impacts.
Key context
The use of cryptocurrencies by Iranian and Russian entities to bypass sanctions is notable. For example, the A7A5 stablecoin processed $110 billion in transactions despite sanctions, and Iran has reportedly eased foreign currency controls to encourage crypto use like Tether’s USDT and Bitcoin for cross-border payments. The US has taken similar actions, including freezing over $130 million in crypto connected to Iran’s central bank, and analytics firm TRM Labs reported substantial flows between crypto exchanges and sanctioned Iranian entities.
Key numbers and entities
Banca d’Italia (Italy’s central bank), crypto asset service providers (CASPs), A7A5 stablecoin with $110 billion in transactions between February 2025 and May 2026, US Treasury Secretary Scott Bessent, over $130 million in frozen crypto linked to Iran, blockchain security platform CertiK, blockchain analytics company TRM Labs, and the crypto exchanges CoinEx and Iranian entities.
What remains unclear
The source does not specify how Banca d’Italia will enforce the sanctions screening, what penalties CASPs might face for non-compliance, or the timeline for implementation. The impact of these measures on the broader EU crypto ecosystem or on user privacy is also not detailed.