Italy enforces zero-threshold crypto sanctions screening
Italian regulators have mandated zero-threshold sanctions screening for all crypto transactions, with Banca d’Italia formally ordering service providers to deploy strict internal controls. This regulatory crackdown aims to counter illicit flows, including the significant volume of sanctioned stablecoins and Iranian cross-border settlements identified by blockchain analytics firms.
GN markets/crypto (en-US) reports that Banca d’Italia issued a formal order on Monday, explicitly requiring crypto-asset service providers to implement internal controls for identifying customers linked to sanctioned entities. The report highlights the urgency of this move, noting that the ruble-backed A7A5 stablecoin processed $110 billion in transactions between early 2025 and mid-2026 despite Western sanctions, while Iranian authorities have encouraged the use of USDT and Bitcoin to bypass financial restrictions.
Source: GN markets/crypto (en-US)Italian regulators have confirmed that crypto-asset service providers must apply sanctions screening to every transaction, explicitly prohibiting the use of minimum value thresholds to bypass compliance checks.
Source: GN markets/crypto (en-US)
