Italy’s central bank orders sanctions checks on every crypto transfer
Banca d'Italia's directive eliminates minimum thresholds for screening, forcing crypto service providers to check every single transaction against sanctions lists.
Italy’s central bank just made life considerably harder for crypto firms operating in the country. Banca d’Italia issued a communication on September 7 requiring that every single crypto asset transfer be screened against sanctions lists, with no minimum transaction value to duck under.
What the directive actually requires
The Banca d’Italia communication reinforces obligations stemming from European Banking Authority guidelines (EBA/GL/2024/15), which took effect in Italy on December 30, 2025. The core requirement is straightforward: crypto-asset service providers (CASPs) and payment service providers (PSPs) must screen both originator and beneficiary information on every crypto transfer.
Traditional payment service providers have enjoyed certain carve-outs for instant payments, where the speed of execution makes full pre-transfer screening impractical. The Banca d’Italia made a point of clarifying that those exceptions do not extend to crypto transfers managed by CASPs.
Non-compliance isn’t just a slap on the wrist, either. CASPs that fail to meet these requirements face both administrative and criminal penalties under Italian law.
The Italian crypto market under MiCA
Italy’s crypto sector has been steadily formalizing under the EU’s Markets in Crypto-Assets (MiCA) regulation. As of mid-2026, eight entities are authorized to provide crypto services under MiCA in the country.
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This latest directive doesn’t introduce new sanctions or create new legal obligations from scratch. Instead, it’s a pointed reminder from the central bank that existing rules must actually be followed. With MiCA’s transitional regime for previously authorized Virtual Asset Service Providers concluding on June 30, 2026, national regulators are in the enforcement phase rather than the rulemaking phase.
What this means for crypto firms and users
The immediate impact falls squarely on the operational budgets of Italian CASPs. Screening every transaction requires robust technology infrastructure, typically involving integration with specialized compliance platforms that maintain real-time sanctions databases.
The nine authorized Italian CASPs now face a concrete deadline pressure: reassess their screening mechanisms and alert procedures to ensure full compliance with EU and national sanctions standards.