Coinbase Fined $24.7M by Ireland’s Central Bank for Compliance Failures

The Central Bank of Ireland (CBI) has fined Coinbase Europe Limited (CBEL) €21.5 million ($24.7 million) for failing to adequately monitor money laundering and terrorist financing activities. This penalty is related to coding errors in transaction monitoring during 2021 and 2022.

Key Points

Coinbase agreed to the settlement due to technical errors affecting transaction oversight.
The fine was determined by analyzing CBEL's average annual revenue from 2021 to 2024, totaling €417 million.
CBEL is a registered Virtual Asset Service Provider (VASP) in Europe, responsible for monitoring customer transactions for suspicious activities.
Approximately 31 transactions went unsupervised over a year, with their value exceeding €176 billion.

Regulatory Compliance Efforts

Coinbase is committed to regulatory compliance and attempted to rectify its Transaction Monitoring System (TMS).
The exchange is expanding globally, including investment in CoinDCX in India and acquiring Echo, a platform for on-chain capital raising.