Coinbase Europe Penalized €21M by Ireland Due to Overlooked Transactions
The Central Bank of Ireland has imposed a fine of €21,464,734 on Coinbase Europe Limited due to its failure to comply with anti-money laundering and counter-terrorist financing regulations. These violations transpired between April 2021 and March 2025 and were marked by significant deficiencies in the company’s transaction monitoring capabilities. This enforcement action represents the first instance of a crypto company being penalized under Ireland’s revised sanctions framework.
Millions of Transactions Were Overlooked
The Central Bank indicated that Coinbase Europe neglected to properly oversee more than 30 million transactions during the specified timeframe. These transactions amounted to over €176 billion. Approximately 31 percent of the total transaction volume at Coinbase Europe during this period went without adequate scrutiny.
After recognizing the issue, a comprehensive review led to the filing of 2,708 suspicious transaction reports with Irish authorities, noting potential associations with money laundering, fraud, and child sexual exploitation.
Reasons for the Lowered Final Fine
Initially, the Central Bank estimated the penalty to exceed €30 million. Nonetheless, Coinbase acknowledged the findings and entered into a settlement, which afforded the company a 30 percent discount on the fine. Consequently, the total penalty was brought to just below €21.5 million. Such a reduction is permissible within Ireland’s enforcement framework when a company cooperatively resolves the issue without resorting to legal action.
DISCOVER: Best New Cryptocurrencies to Invest in 2025
Coinbase Attributes the Failure to Coding Errors
In response, Coinbase Europe stated that the monitoring shortcomings were attributable to three distinct coding errors within its screening system. One of those errors pertained to the platform’s incorrect handling of special characters such as the ampersand in digital wallet addresses, resulting in oversight of certain transactions.
These challenges remained hidden for a considerable duration, resulting in a regulation failure. The company has since reported that it has rectified the issues and fortified its systems across its European branches.
A Pioneering Action for Ireland and a Challenge for Coinbase
This marks the inaugural instance of the Central Bank of Ireland taking formal enforcement action against a crypto asset firm under its newly established procedures in 2023. The timing is crucial for Coinbase, as it transitions its European operations from Ireland to Luxembourg. Consequently, regulators and investors will closely observe how Coinbase navigates this new environment and whether the regulation measures prove successful.
DISCOVER: 20+ Next Crypto to Explode in 2025
Crypto Companies Under Close Regulatory Scrutiny
This case illustrates that major crypto asset platforms are now required to adhere to the same crypto law standards as conventional financial entities in terms of transaction monitoring and reporting suspicious activities. The extent of Coinbase Europe’s failure emphasizes how quickly issues can escalate when crypto law infrastructure does not keep pace with rapid business expansion. Billions of euros circulated through the system without adequate screening, resulting in considerable risk for both the company and regulatory bodies.
Future Implications for Coinbase and the Crypto Sector
Other crypto asset firms may view this enforcement as a prompt to reassess their own transaction oversight systems. The consequences of negligence or delay have become increasingly apparent. For Coinbase, its shift to Luxembourg will be scrutinized as a measure of whether it can regain regulatory trust while remaining proactive to new regulations. Although the fine is settled, the examination is far from concluded.
DISCOVER: 20+ Next Crypto to Explode in 2025
Join The 99Bitcoins Update Discord Here For The Latest Trading market Updates
Key Takeaways
- The Central Bank of Ireland has levied a fine of over €21 million against Coinbase Europe for significant transaction monitoring failures between 2021 and 2025.
- Over 30 million transactions valued at more than €176 billion were inadequately monitored, with 2,708 suspicious activity reports subsequently filed after a retrospective review.
- The original fine was reduced by 30 percent after Coinbase acknowledged the findings and came to a settlement with regulators.
- Coinbase attributed the failures to three coding errors, including issues that led to certain wallet address characters being overlooked.
- This represents the first public enforcement action taken by Ireland regarding crypto under its new framework, coinciding with Coinbase’s transition to Luxembourg.
The post Coinbase Europe Fined €21M by Ireland Over Missed Transactions appeared first on 99Bitcoins.
