Coinbase Hit with €21.5M Fine from Ireland’s Central Bank for AML Compliance Issues
The Central Bank of Ireland has penalized Coinbase Europe Ltd a total of 21.5 million euros due to serious issues within their anti-money laundering systems. The regulators have cited the crypto leader as having inadequacies in tracking thousands of transactions, which took years to resolve.
Regulators Found Major Oversight Gaps
Irish law requires crypto exchanges to monitor user transactions, reporting any suspicious ones related to laundering funds or supporting terrorism.
An investigation has found Coinbase has not properly monitoring more than 30,000 transactions from 2021 to 2025. The organization has also delayed the rollout of a fully compliant system for more than three years.
Central Bank Warns of Criminal Risk
The view of Colm Kincaid, the Irish Central Bank's Deputy Governor, on weak compliance is quoted below:
“If the systems of monitoring fail, it allows criminals to escape notice, and they'll take advantage of it,” he explained.
“The anonymity and global reach of crypto make it particularly tempting for scammers. Companies need strong mechanisms to flag and report irregular transactions.”
Settlement and Fine Reduction
The Central Bank first penalized a fine of 30 million euros, which was reduced to 21.46 million euros following a settlement agreement and acknowledgment of compliance violations by Coinbase.
Once Coinbase fixed the issue, it identified 2,708 suspicious transactions, which it then reported to the Irish authorities.
Coinbase's Response
In a public announcement, Coinbase explained the matter as being due to “technical coding errors” within its monitoring system in 2021 and 2022. The company explained that it has since improved its AML measures.
Why It Matters
The action is one of the biggest taken against a crypto exchange in Ireland, marking a stronger level of scrutiny for digital asset services operating within the EU. In other words, AML regulations state that crypto companies have a proactive role in the prevention of money laundering. Key takeaway: The Coinbase case illustrates the increasing significance of robust AML compliance in the crypto industry as the regulatory environment becomes stricter.
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