The Central Bank of Ireland has levied a hefty fine of $24.75 million (€21,464,734) against Coinbase Europe Limited, the European division of the prominent cryptocurrency exchange, for failing to adhere to anti-money laundering (AML) and counter-terrorist financing (CTF) monitoring obligations over a span from 2021 to 2025.
Coinbase Europe Fined By Irish Regulator
In a significant regulatory action announced on November 6, 2025, the Central Bank revealed its first enforcement action against the crypto sector, targeting Coinbase Europe Limited for its failures in AML monitoring. The fine, initially set at $35.3 million (€30.6 million), was reduced to $24.75 million after a 30% settlement discount was applied.
According to the official announcement, Coinbase Europe has acknowledged the infractions and accepted the facts presented in the Settlement Notice. However, the imposed sanctions are contingent upon confirmation by the High Court before becoming effective.
Coinbase Europe has admitted the prescribed contraventions and has agreed to the undisputed facts as set out in the Settlement Notice (…). The sanctions have been accepted by Coinbase Europe. The sanctions are subject to confirmation by the High Court and will take effect once confirmed.
The infractions relate to “faults in the configuration of their transaction monitoring system,” leading to over 30 million transactions remaining inadequately monitored over a twelve-month period. These transactions collectively amounted to €176 billion, accounting for roughly 31% of all Coinbase Europe transactions during the relevant timeframe.
As a registered Virtual Asset Service Provider (VASP) in Ireland, Coinbase is mandated to monitor customer transactions and report any suspicious activity through a Suspicious Transaction Report (STR) to national authorities, including the Financial Intelligence Unit (FIU) and Revenue Commissioners.
Despite being aware of these significant shortfalls, Coinbase Europe took nearly three years to complete the necessary monitoring on the affected transactions, resulting in the filing of 2,708 STRs to the FIU. These reports raised concerns about serious criminal activities linked to the unmonitored transactions.
Colm Kincaid, Deputy Governor of Consumer and Investor Protection at the Central Bank, emphasized the crucial role of financial institutions in combating financial crime: “To be effective in combatting financial crime, law enforcement agencies rely on regulated financial institutions to have systems in place to monitor transactions and report suspicions. The failure of such a system within any financial institution creates an opportunity for criminals to evade detection – and criminals will take that opportunity.” He underscored the importance of timely reporting to the Central Bank whenever system deficiencies arise.
Coinbase Under Political Scrutiny
Coinbase’s troubles are compounded by recent political controversy in the US. Last week, Senator Chris Murphy criticized the exchange, alleging that its financial contributions to former President Donald Trump were part of a “corruption factory” designed to influence political outcomes.
Coinbase’s Chief Legal Officer, Paul Grewal, and Chief Policy Officer, Faryar Shirzad, have refuted such claims, asserting that the allegations stem from misunderstandings. They argue that the legal challenges faced by Coinbase and other crypto companies stem from overreach by previous regulatory authorities.
Recent events reflect the mounting pressures faced by Coinbase as it navigates both regulatory landscapes and political scrutiny. The exchange has previously called for clearer regulations, and earlier this year filed a Freedom of Information Act (FOIA) request to investigate the SEC’s spending on enforcement actions against crypto firms during the Biden Administration.
As the crypto landscape continues to evolve, Coinbase finds itself at the intersection of regulatory challenges and political discourse, highlighting the complexities of operating within an increasingly scrutinized ecosystem.
