Ireland fines Coinbase €21.5 million for failing to monitor €176 billion in transactions

On 6 November 2025, the Central Bank of Ireland (CBI) announced a €21.5 million penalty against Coinbase Europe, a subsidiary of Coinbase Global, for violations of anti-money-laundering (AML) and counter-terrorist-financing (CTF) rules.

Coinbase’s authorisation by the regulator came less than three years ago, and this marks the first sanction of its kind against a virtual-asset service provider in Ireland.

The breach involved over 30 million transactions — representing approximately 31 % of the firm’s total volume in a 12-month period — valued at more than €176 billion, which were not properly monitored under the firm’s transaction-monitoring system.

In its statement, Coinbase acknowledged that five of its 21 transaction-monitoring system scenarios did not fully screen transactions in 2021 and 2022 due to three coding errors. The firm said the issues did not affect other monitoring scenarios or complementary controls.

Regulatory concerns and industry implications

Officials at the CBI emphasised that crypto-asset platforms present heightened risks because of their cross-border nature and relative anonymity. As one deputy governor explained:

“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. This is why it is especially important that firms engaged in crypto services have robust controls in place to identify and report suspicious transactions.” — Colm Kincaid, Deputy Governor, Central Bank of Ireland

For crypto investors and market participants in Europe, the penalty against Coinbase Europe signals a stricter regulatory environment and underlines the need for compliance frameworks tailored to virtual-asset services. The case may set a precedent for how regulators treat firms offering services under the keyphrase “Coinbase Europe” banner and beyond.

The CBI labelled this fine the fourth-largest financial penalty it has imposed. For Coinbase Europe, the sanction may affect reputational standing and could prompt stronger internal controls, especially given the firm’s global role.

What this means for Coinbase Europe and the wider ecosystem

For Coinbase Europe, the sanction forces an urgent review of internal controls, governance and transaction monitoring. The firm stated:

“Coinbase recognises the importance of effective AML procedures and takes our obligations under AML legislation and regulatory guidance very seriously… Our goal has always been and will always be to build the most trusted, compliant, and secure platform in the world.” — Statement, Coinbase Europe

In practical terms this could lead to increased costs for Coinbase Europe — from systems upgrades to enhanced staffing — as well as potential onboarding delays or restrictions for users.

For the broader crypto industry, especially firms under European jurisdiction, the message is clear: regulators will hold virtual-asset service providers to traditional financial-crime standards. Any firm using the “Coinbase Europe” name or operating via its entity structure must ensure real-time monitoring and robust suspicious-activity reporting.

For investors, the fine underlines the elevated compliance risk in crypto markets and the possibility that regulatory action may influence firm valuations, user trust and platform accessibility.

What to watch next

• Whether Coinbase Europe is required to submit a remediation plan to the CBI or will face ongoing oversight.
• Possible ripple effects in other jurisdictions as regulators studying the case may impose similar sanctions and raise the bar for firms operating under the “Coinbase Europe” brand.
• How the fine affects Coinbase Europe’s customer base, product roll-out and licensing strategy in Europe and beyond.
• Whether other virtual-asset service providers will proactively update their AML/CTF frameworks to avoid similar outcomes under the “Coinbase Europe” benchmark.