Italy’s central bank orders sanctions screening for crypto transfers
Italy’s central bank, Banca d’Italia, has ordered crypto asset service providers to apply mandatory sanctions screening on crypto transfers. CASPs must create policies and internal controls to enforce EU financial sanctions and identify customers and transactions linked to sanctioned entities. The move responds to growing use of cryptocurrencies by sanctioned actors, including Russian and Iranian entities, to bypass financial restrictions. Examples cited include a ruble-backed stablecoin with large transaction volume despite Western sanctions, Iran’s reported push for businesses to use crypto for cross-border settlement, and US actions freezing crypto tied to Iran’s central bank. Crypto analytics firms have also reported substantial flows between exchanges and sanctioned Iranian entities.
