Italy’s central bank has required cryptocurrency asset service providers to implement measures to enforce EU financial sanctions on crypto transfers, targeting illicit flows linked to sanctioned entities in Iran and Russia.
Banca d’Italia’s directive, issued on Monday, compels crypto firms to adopt policies and internal controls to screen transactions involving entities under EU sanctions. The move follows reports of significant illicit activity, including $110 billion in transactions on the A7A5 stablecoin between February 2025 and May 2026.
The A7A5 stablecoin, backed by the Russian ruble, has been identified as a conduit for large-scale transfers, according to CertiK, a blockchain security firm. Separately, TRM Labs, a blockchain analytics company, reported $3.8 billion in flows between the exchange CoinEx and sanctioned Iranian entities over seven years.
US Treasury Secretary Scott Bessent announced in July that over $130 million in crypto linked to Iran’s central bank had been frozen. Iran’s central bank is said to have eased foreign currency controls, reportedly encouraging the use of crypto for cross-border transactions, though this claim remains unconfirmed.
The measures by Italy’s central bank come amid intensified global efforts to combat the use of cryptocurrencies for evading sanctions. Tether’s USDt (USDT) has also been implicated in enabling Iranian businesses to bypass restrictions, though the exact scale of such activity remains unclear.
Written by Rebecca Shaw
Industry Desk
