Central Bank of Ireland fined Coinbase Ireland €3.25M for inadequate fund safeguarding and over-reliance on U.S. parent entity.
Regulation & Gov ·
The Central Bank of Ireland issued a €3,252,618 penalty to Coinbase Ireland for breaching safeguarding and outsourcing requirements under the country's Electronic Money Regulations from November 2020 through August 2025. The fine, representing a 30% settlement discount from an original €4,646,597 assessment, marks the regulator's second enforcement action against Coinbase's European operations within a year, following a €21.5 million penalty against a separate Coinbase entity in May for anti-money-laundering lapses.
The Central Bank identified three core failures: excessive reliance on the U.S. parent company to execute Irish and EU-mandated safeguarding processes, insufficient in-house expertise to monitor customer fund protection, and prolonged underfunding of the designated safeguarding account. Regulators also cited inadequate internal controls and the firm's failure to notify authorities of material changes to safeguarding arrangements. Coinbase Ireland acknowledged the breaches.
The penalty requires High Court confirmation before becoming final. The enforcement action underscores regulatory expectations that firms honor commitments made during authorization and maintain robust local compliance infrastructure, particularly given Coinbase's reliance on Ireland as its EU gateway following Brexit.