The Central Bank of Ireland has imposed a fine of approximately €21.5 million ($25 million) on Coinbase Europe Limited for failing to meet anti-money laundering (AML) and counter-terrorism financing (CFT) obligations. The violations occurred between April 2021 and March 2025, marking the first disciplinary action against a crypto firm by the regulator.
Insufficient Transaction Monitoring
Coinbase Europe, a subsidiary of Coinbase Group providing crypto exchange and wallet services, failed to properly monitor over 30 million transactions totaling more than €176 billion ($192 billion)—around 31% of the company’s transactions during the period affected by technical issues.
It took nearly three years for Coinbase Europe to review all problematic transactions, ultimately submitting 2,708 suspicious transaction reports (STRs) to the Irish Financial Intelligence Unit. These reports highlighted potential involvement in serious crimes including money laundering, fraud, drug trafficking, cybercrime, and child sexual exploitation.
Regulatory Emphasis on Real-Time Monitoring
The Central Bank stressed that real-time transaction monitoring and timely STR reporting are essential to effective AML systems. Failures in these areas can severely undermine law enforcement’s ability to detect and investigate financial crimes.
Coinbase Europe acknowledged the violations, admitting to inadequate monitoring of 30.4 million transactions and the absence of effective internal controls to prevent AML and CFT breaches, in violation of the Criminal Justice Act 2010.
Regulator’s Statement
Colm Kincaid, Deputy Governor for Consumer and Investor Protection at the Central Bank of Ireland, commented:
“Regulated financial institutions are relied upon by law enforcement to monitor transactions and report suspicious activity. A failure in these systems provides opportunities for criminals to evade detection.”
He added that crypto assets possess unique technological characteristics that make them attractive to criminals, and companies operating in the sector must have robust controls to identify and report suspicious transactions.
Final Penalty and Context
The initial fine of €30.7 million ($35 million) was reduced by 30% through an Undisputed Facts Settlement, resulting in the final €21.5 million penalty. The decision is pending confirmation by the Irish High Court.
This case is part of a broader regulatory effort, marking the 162nd administrative sanction under the Central Bank’s program, with total fines exceeding €428 million ($495 million).
The action comes amid tighter EU crypto regulation: in June 2025, Coinbase obtained a license under the Markets in Crypto-Assets (MiCA) framework in Luxembourg, while in July, the European Anti-Money Laundering Authority introduced stricter rules, including a ban on anonymous wallets and privacy-focused coins.
