The Bank of Italy, known as Banca d’Italia, has mandated strict sanctions screening for virtual currency transactions to assist in minimizing unlawful capital movements throughout the European Union.
As stated in a Monday announcement, the financial institution indicated that crypto asset service providers (CASPs) are required to establish internal controls and operational policies to properly enforce EU financial restrictions during digital asset transfers.
The central authority noted that CASPs ought to maintain robust safeguards to pinpoint both users and transactions associated with restricted parties.
Digital assets are progressively being leveraged by groups in Russia and Iran to bypass monetary penalties. Blockchain security firm CertiK reported that the Russian ruble-linked A7A5 stablecoin handled $110 billion in total volume from February 2025 through May 2026, even though it faced Western restrictions.
Additionally, Iran’s central bank has reportedly relaxed foreign exchange regulations to motivate companies to utilize cryptocurrencies like Bitcoin (BTC) and Tether’s USDt (USDT) for international payments via Iranian platforms to bypass restrictive measures.
US Treasury Secretary Scott Bessent stated on July 14 that United States officials had ordered the freezing of exceeding $130 million in digital assets stored within addresses connected to the central bank of Iran.
Furthermore, blockchain intelligence firm TRM Labs revealed more than $3.8 billion in transactions involving the CoinEx exchange and restricted Iranian organizations over a span exceeding seven years, according to a June report.
Related: US authorities freeze $344M in crypto linked to Iran
Originally published at https://cointelegraph.com/news/italys-central-bank-orders-sanctions-screening-for-crypto-transfers?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
