The Central Bank of Ireland has fined Coinbase Ireland €3,252,618, about $3.6 million, for failing to properly protect customer funds.
Coinbase Ireland, an e-money institution within the Coinbase group, breached safeguarding and outsourcing rules under Ireland’s Electronic Money Regulations between November 2020 and August 2025, the regulator said on Thursday.
Coinbase Ireland admitted the breaches.
What the regulator found
The Central Bank said Coinbase Ireland relied too heavily on its US parent company for safeguarding, and did not have enough expertise locally to oversee it.
It found the firm’s safeguarding account was left underfunded for long periods, its internal controls were weak, and it failed to report material changes to its safeguarding arrangements.
“Payment and e-money firms have a fundamental obligation to fully safeguard customers’ funds,” said Karen O’Leary, the Central Bank’s director of enforcement. She said the regulator had “no tolerance for weaknesses in safeguarding arrangements.”
O’Leary also called the firm’s failure to honour assurances given during its authorisation, and to report material changes, “completely unacceptable.”
How the fine was set
The fine includes a 30% discount for settling. Without it, the penalty would have been €4,646,597.
Coinbase Ireland agreed the settlement on 21 October. The fine still needs to be confirmed by Ireland’s High Court.
Not the first Irish fine
The Central Bank has previously fined another Coinbase entity, Coinbase Europe, €21.5 million over failures in its anti-money laundering controls.
What happens next
The High Court must confirm the sanction before it takes effect. The case adds to scrutiny of how crypto firms in Europe protect customer money.
