Bank of Italy Mandates Sanctions Screening for All Crypto Transfers

The Bank of Italy has issued a formal warning to crypto-asset service providers (CASPs), stating that every cryptocurrency transfer must undergo sanctions screening regardless of the transaction volume. This regulatory stance eliminates the possibility of applying a minimum amount exemption, a practice sometimes used in traditional finance to streamline low-value operations. The directive emphasizes that the anonymity and speed of blockchain technology necessitate comprehensive oversight to prevent the circumvention of European Union restrictive measures.

Alignment with EBA Guidelines and MiCA

This requirement is rooted in guidelines established by the European Banking Authority (EBA), which are scheduled to be fully implemented in Italy by December 30, 2025. The Bank of Italy clarified that these measures do not represent new sanctions but rather reinforce existing obligations under EU law. Notably, the central bank highlighted that while certain instant payment exemptions exist for traditional payment service providers, these do not extend to the crypto sector. Furthermore, obtaining a license under the Markets in Crypto-Assets (MiCA) regulation does not exempt firms from these independent screening duties.

Operational Impact on Crypto Service Providers

To comply with the upcoming enforcement, Italian crypto companies must perform a thorough audit of their internal compliance frameworks. The Bank of Italy expects firms to enhance the following areas:

• Update frequency and accuracy of sanctions list databases.
• Refinement of automated alert procedures to minimize false positives while ensuring no transaction is missed.
• Development of sophisticated systems capable of handling the high-frequency nature of digital asset transfers.
• Rigorous training for compliance officers to manage potential matches and reporting protocols.

Industry analysts suggest that these requirements will significantly increase operational expenditures for smaller firms, as the cost of maintaining high-tier screening software and dedicated compliance staff scales with transaction volume.

Conclusion

The Bank of Italy’s uncompromising stance on transaction monitoring signals a maturing regulatory environment where blockchain-based assets are held to the same, if not stricter, standards as traditional fiat instruments. By removing the "de minimis" threshold for screening, the central bank aims to close potential loopholes that could be exploited for illicit activities. As the December 2025 deadline approaches, the Italian crypto industry must pivot toward more robust technical solutions to balance compliance costs with the efficiency of digital asset services.