Banca d'Italia urges screening of crypto transfers

TLDR

Banca dItalia has told crypto service providers in Italy that they must screen every crypto transfer against sanctions lists, reinforcing existing EU anti money laundering rules.

1. The central bank reiterated that all crypto transfers must be checked for sanctions, with no minimum thresholds or exemptions for small transactions.
2. Italian banks and crypto asset service providers will need stronger automated screening, which could mean more checks and occasional delays for some users.
3. The key thing to watch is how strictly supervisors enforce this and whether similar screen-all-transfers expectations spread across the EU.

Deep Dive

1. What Banca dItalia Is Demanding

In a recent supervisory communication, Banca dItalia reminded crypto asset service providers (CASPs) that they must screen every crypto transfer for sanctions compliance, regardless of transaction value.

This instruction aligns with European Banking Authority guidelines in force since December 2025 and explicitly rejects internal minimum thresholds that let small transfers bypass checks. Providers must verify both the originator and beneficiary before executing a transfer and run transaction data through automated systems linked to sanctions lists.

The rules apply to banks, investment firms, payment and e money institutions, and authorized CASPs. Instant payment screening exceptions that exist for some traditional payment providers do not apply to crypto transfers, so each transfer must be screened individually.

2. How This Affects Firms And Users

For firms operating in Italy, this effectively raises the bar on sanctions and anti money laundering controls, especially for CASPs that previously focused only on larger value transactions. They now need robust governance, updated sanctions lists, alias handling, and escalation procedures for potential matches.

In practice, users may see more identity checks, transaction questions, or occasional delays, particularly when transfers touch higher risk jurisdictions, counterparties with incomplete data, or addresses flagged by blockchain analytics. There is no indication of blanket bans on everyday transfers, but more transfers could be paused for review.

MiCA authorization and sanctions compliance are separate obligations. A MiCA license does not exempt a firm from these screening duties, so providers must treat sanctions controls as a parallel, ongoing requirement.

3. What To Watch Next

So far, Banca dItalia has not announced a new deadline or specific penalties tied to this reminder, but supervisors can use it to justify inspections or enforcement where controls are weak. How strictly they follow up will determine real world impact.

At the EU level, sanctions lists are expanding, including more crypto platforms and financial institutions, so the volume of hits firms must manage is likely to grow. That increases operational pressure on CASPs that serve Italian clients.

Users should watch for updated terms, compliance notices, or risk disclosures from their exchanges or wallet providers, especially if they transact with self hosted wallets or cross border platforms that might be closer to EU sanctions risk.

Conclusion

Banca dItalias stance confirms a stricter screen everything model for crypto transfers in Italy, focused on sanctions rather than retail access bans. The main impact will fall on providers compliance systems and, indirectly, on users whose transfers trigger extra checks. The outcome to monitor is how quickly firms strengthen controls and whether similar expectations become the practical norm across the wider European crypto market.