The Central Bank of Ireland has fined Coinbase Exchange’s European subsidiary £21.5 million. The fine, reported by local news outlets, was for failing to comply with anti-money laundering (AML) and counter-terrorist financing transaction monitoring obligations.
The regulatory action marks a significant enforcement measure in Europe’s virtual asset sector and underscores growing scrutiny of crypto exchanges by financial authorities.
The Scope of Breaches by Coinbase
The breaches allegedly occurred between April 2021 and March 2025, when Coinbase Europe failed to monitor roughly 30 million transactions. The transactions accounted for over 31% of its transaction volume during a twelve-month period.
These transactions, totaling more than €176 billion, included flows potentially linked to serious criminal activity, including money laundering, drug trafficking, cyberattacks, and child sexual exploitation.
Authorities determined that Coinbase’s transaction-monitoring system was improperly configured, resulting in significant oversight gaps. The firm took nearly three years to retrospectively review the affected transactions. The company eventually filed over 2,700 suspicious transaction reports with the Financial Intelligence Unit.
Coinbase acknowledged that three coding errors led to five of its twenty-one risk indicators failing during 2021 and 2022. The company reported having resolved these issues within weeks of identification, implementing revised protocols for testing and monitoring.
Regulatory Response
This penalty is the Central Bank of Ireland’s first major enforcement outcome in the crypto sector, reflecting a tightening regulatory environment for digital asset service providers. Coinbase Exchange received a 30% discount on the original fine due to early settlement, lowering it from an initial €30.7 million to €21.5 million in accordance with recent annual revenue.
The Central Bank’s Deputy Governor for Consumer and Investor Protection, Colm Kincaid, emphasised the need for robust monitoring systems and noted that the technological characteristics of cryptocurrencies and their international reach make them more attractive to criminal financial activities. Effective AML compliance is crucial for international cryptocurrency exchanges to prevent illegal use and maintain access to regulated markets, regulatory bodies said.
As part of the settlement, Coinbase Europe acknowledged the facts publicly and affirmed the introduction of new measures to prevent future oversight breaches of this kind. As the area adjusts to new threats brought on by developing digital banking infrastructure, the fine serves as a model for future enforcement actions.
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