Irish regulator imposes €3.25 million penalty on Coinbase Ireland for safeguarding failures

The Central Bank of Ireland has levied a €3.25 million fine on Coinbase Ireland, citing excessive dependence on its US parent, insufficient protection of customer assets and serious governance shortcomings. Investigators noted that for four years the Irish unit allowed client funds to be commingled with other balances, breaching its 2019 authorization promise of robust, automated safeguards. The regulator also highlighted that outsourcing the safeguarding function impaired internal controls.

This action comes after a €21.5 million sanction against Coinbase Europe for failing to monitor over 30 million transactions for money-laundering and terrorist-financing risks. Coinbase Europe’s Irish VASP registration expired last year as the group shifted operations to Luxembourg under the EU’s MiCA framework. The fine is pending High Court confirmation. Central Bank enforcement director Karen O’Leary emphasized zero tolerance for weaknesses in fund protection, while Coinbase Global is led by CEO Brian Armstrong.