The Central Bank of Ireland has imposed a fine of €3.25 million on Coinbase Ireland Limited. The regulator cited failures in safeguarding customer funds and improper reliance on the US parent company for compliance functions.
The violations occurred between November 2020 and August 2025. The investigation identified three main failures: excessive reliance on US-based group controls, underfunding of safeguarding accounts, and a lack of reporting on material changes to practices.
The base penalty was set at €4.65 million, which was reduced by 30% following a settlement. The fine and a formal reprimand are now pending confirmation from the High Court of Ireland.
Coinbase stated that it self-reported many of the issues in January 2024 and completed most fixes within that year. The company confirmed that no customer funds were lost or became inaccessible during these events.
To address the findings, Coinbase has redesigned its safeguarding calculations, hired a dedicated head of safeguarding, and posted a €25 million guaranty bond. The firm also passed two third-party validations.
