The Central Bank of Ireland just hit Coinbase Europe with a $24.8 million (€21.5 million) fine.
Why? The company didn’t follow anti-money laundering and counter-terrorist financing rules on more than 30 million transactions.
This is Ireland’s first enforcement action against a cryptocurrency company.
Why is Coinbase being Fined
Coinbase Europe has been fined because there were problems in their transaction monitoring system.
“This resulted in more than 30 million transactions not being properly monitored over 12 months”, the Central Bank said in a statement on Thursday.
During the time when there were issues, these transactions added up to more than €176 billion. This represented about 31% of all the transactions made by Coinbase in Europe during that period.
To be effective in combating financial crime, law enforcement agencies rely on regulated financial institutions to have systems in place to monitor transactions and report suspicions,” said Colm Kincaid, the deputy governor of CBI.
Coinbase recently explained that the issue they faced was caused by three coding mistakes.
These errors affected five out of their 21 systems that are designed to monitor transactions.
As a result, some transactions weren’t fully reviewed in 2021 and 2022.
Coinbase Europe took almost three years to review its past transactions.
Because of this, Coinbase ended up sending 2,708 reports to the Financial Intelligence Unit.
Those reports flagged all sorts of suspicious stuff like money laundering, fraud, drug trafficking, cyber-attacks, even child exploitation.
Originally, the CBI wanted to fine them €30.7 million, but after settling on November 5, they dropped it down to $24.8 million (€21.5 million).
This fine is one of the largest ever to be issued by the CBI in the crypto asset space.
More News: Coinbase Launches Stablecoin Payments Platform
Wider Significance to Crypto Firms
This significant action by the CBI sends a very strong message.
Crypto asset firms operating in Ireland and operating through Ireland into Europe will have to follow the same rules as other financial services firms when it comes to AML and CTF controls.
Deputy Governor Colm Kincaid said
“Crypto has particular technological features which, together with its anonymity-enhancing capabilities and cross-border nature, makes it especially attractive to criminals looking to move their funds.”
Coinbase is facing new challenges as it is already under scrutiny from regulators in several countries.
For example, its UK branch was fined in 2024 by the Financial Conduct Authority for not doing enough to prevent financial crimes.
This recent sanction might affect how Coinbase organizes its business in Europe.
In fact, they plan to move their European operations from Ireland to Luxembourg by the end of the year.
What Comes Next?
Coinbase says it’s stepping up its compliance controls.
The Central Bank of Ireland isn’t backing off, either.
They will keep a close eye on crypto and might dig in even deeper with more reviews or tougher enforcement.
And with the EU’s Markets in Crypto‑assets Regulation (MiCA) set to kick in across Europe in late 2025, crypto platforms serving European customers should get ready for stricter rules.
Coinbase shifting its European base to Luxembourg stirs up some new questions, too.
Does Ireland keep its spot as a crypto hub, or will other companies start looking for countries with lighter regulations?
The landscape is shifting, and everyone in the game is watching closely.
