The Bank of Italy has told cryptocurrency service providers that every crypto transfer must be checked for sanctions compliance, regardless of transaction size, under European Banking Authority guidelines that apply in Italy from December 30, 2025.

The central clarification from the Bank of Italy is that crypto firms cannot set a minimum transaction threshold to avoid automatic sanctions screening. According to the notice, all cryptocurrency transfers must be covered, not only larger payments or transfers considered higher risk by value.

The guidance is tied to European Banking Authority rules that become applicable in Italy on December 30, 2025. The Bank of Italy said the measure does not create a new sanctions regime, but instead clarifies how existing restrictive-measures obligations should be applied to crypto transfers.

The Bank of Italy also said exemptions available for some instant payments handled by payment service providers do not extend to cryptocurrency transfers. That distinction matters for firms that may have expected payment-sector treatment to carry over into digital-asset operations.

For crypto service providers, the practical impact is likely to be operational rather than immediate market-facing. Firms are being told to review screening systems, sanctions-list updates, and alert procedures to make sure all applicable transactions are covered. The Bank of Italy also made clear that authorization under the EU's Markets in Crypto-Assets framework does not override separate obligations under EU restrictive-measures rules.

Why It Matters

This development adds to the compliance burden for crypto firms seeking to operate within Europe's regulated framework. Even where licensing rules are becoming more standardized under MiCA, sanctions screening remains a separate control layer that can affect onboarding, transaction monitoring, and back-office costs.

It also underscores a broader regulatory message for the sector: crypto businesses are increasingly being treated as part of the formal financial compliance perimeter, with less room for lighter operational standards on smaller transfers. That could shape how exchanges and other service providers build systems for the European market.