The Central Bank of Ireland has imposed a fine of €21.5 million (approximately $25 million) on the European subsidiary of the cryptocurrency exchange Coinbase for violating anti-money laundering (AML) and counter-terrorism financing (CFT) requirements. The violations occurred from April 2021 to March 2025 and have led to the first such disciplinary action in the Irish cryptocurrency sector.
This is reported by Business • Media
Scope of Violations and Consequences for Coinbase Europe
Coinbase Europe, a subsidiary of the international Coinbase group, failed to adequately monitor over 30 million transactions totaling more than €176 billion, which accounts for about 31% of the company’s operations during this period. As noted by the Central Bank, technical failures in control systems resulted in delays in transaction verification, and the company took nearly three years to conduct a full analysis.
As a result of the investigation, Coinbase submitted 2,708 reports to the Irish financial intelligence unit regarding suspicious transactions that could be linked to money laundering, fraud, drug trafficking, cybercrime, and child sexual exploitation.
Regulator’s Response and Company’s Position
The Irish regulator emphasized that timely monitoring and reporting of suspicious transactions are key components of an effective financial crime prevention system. Failure to comply with these requirements can significantly hinder law enforcement efforts in combating crime.
“To effectively combat financial crime, law enforcement relies on regulated financial institutions that have systems in place to monitor transactions and report suspicions. A failure of such a system in any financial institution creates an opportunity for criminals to evade detection — and criminals will seize that opportunity.”
Coinbase Europe acknowledged the violations and agreed with the facts presented in the report. The company breached Irish legislation, specifically the Criminal Justice Act 2010, due to inadequate monitoring of 30.4 million transactions and a lack of effective internal control procedures to prevent money laundering and terrorism financing.
The initial fine was set at €30.7 million (over $35 million), but the amount was reduced by 30% as part of a settlement under the Undisputed Facts Settlement procedure, resulting in a final penalty of €21.5 million. This decision is still subject to approval by the High Court of Ireland.
The Irish Central Bank highlighted that this is already the 162nd case under the administrative sanctions program, with the total amount of imposed fines exceeding €428 million ($495 million).
At the same time, European regulation of the cryptocurrency sector is tightening. In June 2025, Coinbase received a license under the MiCA regulation in Luxembourg, and in July, the European Anti-Money Laundering Agency announced the introduction of new stringent requirements for crypto companies, including a ban on anonymous wallets and privacy-focused coins.