On Monday September 7, Banca d’Italia directed crypto asset service providers to verify if every transfer that goes through their systems, however small, underwent a sanction screen. In the release, The central bank sent a direct warning to crypto firms to stop setting minimum transaction thresholds in their screening systems.
Direct Mandate on Sanctions Compliance
Translated, the Bank of Italy’s directive reads in part:
“All intermediaries are required to comply with the provisions of the various sanctions regimes currently in force by identifying relationships and transactions linked to designated parties and—where the relevant conditions are met—initiating procedures to freeze funds and economic resources and to notify the competent authorities.”
As per the document, this is not a new set of rules. Instead, it brings reminders to service providers concerning requirements contained in the European Banking Authority guidelines updated in Italy from December 2025. Before the 2025 set of directives, violation of sanctions merely attracted some penalties. However, the newer directives dating back to May 2025, it’s now a criminal offence for financial institutions to fail at screening by setting minimum thresholds.
The policy ensures no sanctioned transactions will bypass sanction controls merely because they are of low value. CASPs now need to look into all the transactions and ensure that none of whatever value passes without proper checks.
Amongst the financial service providers include investment firms, payment institutions, banks, electronic money institutions and Crypto asset service providers. CASPs are required to use different means, including automated systems to compare customer information to general information in the sanction lists.
No Exceptions for Crypto Transfers
In the release, the bank noted that there are exceptions for instant payment and credit transfer providers. However, these exceptions, as per the 2025 Note, do not apply to crypto asset service providers.
CASPs must also strictly adhere to the Travel Rule guidance of the EBA. In addition, The Italian’s central bank reminders to sanction compliance is very different to the EU’s accepted Market In Crypto Assets Regulations, which essentially deals with licensing and governance.
Dan is a seasoned crypto writer for Blockchaindose who got his start in the space back in 2019. Over the past four years, he’s built a solid grasp of how the industry moves, focusing heavily on DeFi, NFTs, GameFi, and promising new projects.
Off the clock, you’ll usually find him buried in a good book or kicking back with a movie. His blend of hands-on market experience and straightforward commentary makes him a clear, trusted voice across the platform.
