Banca d'Italia Mandates Sanctions Screening on All Crypto Transfers
In brief
- Banca d'Italia mandates sanctions screening on every crypto transfer, eliminating minimum value thresholds
- Crypto service providers must screen both originator and beneficiary on each transaction
- Nine authorized Italian CASPs face compliance deadline pressure before June 30, 2026
Screening Requirements Tighten Across the Board
Crypto-asset service providers and payment service providers must screen both originator and beneficiary information on every crypto transfer. The directive eliminates carve-outs that traditional payment firms enjoy for instant transactions. Traditional payment service providers have enjoyed certain carve-outs for instant payments, but those exceptions do not extend to crypto transfers managed by CASPs.
This blanket approach marks a shift in regulatory intensity. Compliance isn't optional. CASPs that fail to meet screening requirements face both administrative and criminal penalties under Italian law.
Infrastructure and Timeline Pressures
Screening every transaction requires robust technology infrastructure, typically involving integration with specialized compliance platforms that maintain real-time sanctions databases. For smaller or newer operators, this represents a material cost.
The timing compounds the pressure. As of mid-2026, eight entities are authorized to provide crypto services under MiCA in Italy, but MiCA's transitional regime for previously authorized Virtual Asset Service Providers concludes on June 30, 2026. The nine authorized Italian CASPs now face a concrete deadline pressure: reassess their screening mechanisms and alert procedures.
Firms must upgrade or face enforcement action. The directive doesn't soften compliance expectations—it hardens them, shifting the competitive calculus for crypto operators in Italy.
