Coinbase Europe Fined €21M by Ireland Over Missed Transactions
The Central Bank of Ireland has fined Coinbase Europe Limited a total of €21,464,734 for failing to meet its obligations under anti-money laundering and counter-terrorist financing rules. The issues occurred between April 2021 and March 2025 and involved significant gaps in the company’s monitoring of transactions flowing through its platform. This enforcement marks the first action taken against a crypto firm under Ireland’s updated sanctions procedure.
Millions of Transactions Went Unchecked
According to the Central Bank, Coinbase Europe failed to properly monitor more than 30 million transactions during the period in question. These transactions totaled over €176 billion. Around 31 percent of Coinbase Europe’s entire transaction volume during that time escaped appropriate oversight.
Once the problem was identified, a back review led to 2,708 suspicious transaction reports being filed with Irish authorities. These reports flagged potential links to money laundering, fraud, and child sexual exploitation.
Why the Final Fine Was Lower Than Expected
The Central Bank initially calculated the penalty at over €30 million. However, Coinbase accepted the findings and entered into a settlement, which gave the company a 30 percent reduction in the fine. That brought the total to just under €21.5 million. This kind of discount is allowed under Ireland’s enforcement framework when a company fully cooperates and agrees to resolve the matter without legal challenge.
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Coinbase Blames Coding Errors for the Failure
Coinbase Europe responded by saying the monitoring failures were the result of three separate coding mistakes in its screening system. One of those bugs involved the platform mishandling special characters like the ampersand in wallet addresses, which caused some transactions to be missed.
These issues went undetected for a significant time, leading to the compliance breakdown. The company said it has since fixed the problems and strengthened its systems across its European operations.
A First for Ireland and a Test for Coinbase
This is the first time the Central Bank of Ireland has taken public enforcement action against a crypto company under its new procedures introduced in 2023. It also arrives at a delicate moment for Coinbase, which is in the process of moving its European operations from Ireland to Luxembourg. The timing means regulators and investors will be paying close attention to how Coinbase handles its new base and whether the compliance fixes prove effective.
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Crypto Firms Are Now Squarely in the Regulatory Spotlight
The case makes clear that large crypto platforms are now expected to meet the same standards as traditional financial institutions when it comes to monitoring transactions and reporting suspicious activity. The scale of Coinbase Europe’s lapse highlights how quickly things can unravel when compliance tools fail to keep up with rapid business growth. Billions of euros moved through the system without appropriate screening, creating serious exposure for both the company and regulators.
What Comes Next for Coinbase and the Industry
Other crypto firms will likely take this enforcement as a sign to revisit their own transaction monitoring systems. The risks of delay or inattention are now more visible. For Coinbase, the move to Luxembourg will be closely watched as a test of whether the company can rebuild trust with regulators while staying ahead of evolving rules. The fine may be settled, but the scrutiny is far from over.
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Key Takeaways
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