Italy mandates crypto sanctions screening — SkimNews
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- Banca d'Italia ordered crypto asset service providers (CASPs) to implement internal controls screening crypto transfers for ties to entities sanctioned under EU financial sanctions
- The directive requires CASPs to identify customers and transactions linked to sanctioned parties when processing transfers, per the central bank's Monday announcement
- Russian ruble-backed A7A5 stablecoin processed $110 billion in cumulative transactions between February 2025 and May 2026 despite Western sanctions, according to blockchain security platform CertiK
- Iran's central bank eased foreign currency controls to encourage businesses to use Tether's USDT and Bitcoin to settle cross-border transactions through Iranian exchanges and circumvent sanctions
- US Treasury Secretary Scott Bessent said on July 14 that American authorities directed a freeze of more than $130 million in crypto held in wallets linked to Iran's central bank
- TRM Labs reported more than $3.8 billion in flows between crypto exchange CoinEx and sanctioned Iranian entities over more than seven years through June
Why it matters: Italy's mandate adds a third enforcement layer alongside the US's $130M freeze on Iran-linked wallets and ongoing EU sanctions, raising compliance costs for Italian-licensed CASPs while targeting the $110B in cumulative A7A5 stablecoin volume that slipped through prior controls.
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