Italy Implements Sanctions Screening for Cryptocurrency Transfers
- Banca d’Italia mandates that crypto asset service providers (CASPs) enforce EU financial sanctions during crypto transfers.
- The Russian A7A5 stablecoin processed $110 billion in transactions from February to May, despite Western sanctions.
- Iran’s central bank has relaxed foreign currency controls to promote the use of cryptocurrencies like Tether’s USDt and Bitcoin for cross-border transactions.
- US authorities have frozen over $130 million in crypto linked to Iran’s central bank as part of sanctions enforcement.
- TRM Labs reported $3.8 billion in cryptocurrency flows between CoinEx and sanctioned Iranian entities over seven years.
The measures by Banca d’Italia reflect growing concerns about the use of cryptocurrencies for illicit activities, particularly by sanctioned states like Iran and Russia. The bank emphasizes the need for CASPs to implement robust controls to identify customers linked to these entities.
With the A7A5 stablecoin processing significant transaction volumes, Italy’s actions aim to curb potential abuses within the cryptocurrency sector while aligning with EU regulations.(Source)
