Banca d’Italia has mandated sanctions screening for every cryptocurrency transfer handled by crypto-asset service providers in Italy, regardless of transaction value. The measure aligns with European Banking Authority guidance applying from December 30, 2025, as well as existing EU sanctions-screening and travel-rule requirements, rather than creating a standalone sanctions regime. Exemptions available to payment providers for certain instant payments do not apply to crypto transfers, and MiCA authorization does not replace obligations under EU restrictive-measures rules. Firms will need systems capable of screening all applicable transactions, updating sanctions lists and processing potential alerts, increasing compliance costs and operational demands. The tighter framework could affect cross-border crypto flows and intermediary operations, while market participants are watching whether stricter compliance requirements influence Bitcoin market dynamics and whether other major EU countries take similar steps.