Dublin, November 6, 2025 – Ireland’s central bank has fined Coinbase Europe, a subsidiary of cryptocurrency exchange Coinbase Global (COIN.O), €21.5 million ($25 million) for failing to properly monitor transactions in compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.

The fine stems from faults in Coinbase Europe’s transaction monitoring system, which left more than 30 million transactions—worth over €176 billion—inadequately monitored over a 12-month period. The regulator said the lapse delayed the reporting of 2,708 suspicious transactions associated with potential criminal activities including money laundering, fraud, drug trafficking, cybercrime, and child sexual exploitation.

---

Coinbase Admits Coding Errors

The Irish central bank reported that Coinbase Europe inadvertently misconfigured its monitoring system, resulting in five of the 21 scenarios designed to detect suspicious activity not fully screening transactions in 2021 and 2022.

In a statement, Coinbase said it corrected the errors within two to three weeks of detecting them and has since enhanced its transaction monitoring, testing, and oversight processes to prevent future occurrences.

“The fine was reduced from €30.7 million as part of a settlement discount, reflecting Coinbase Europe’s average annual revenue of €417 million for the period,” the company said.

The settlement also clarifies that the suspicious transactions, cumulatively valued at €13 million, are not confirmed to have resulted in criminal activity.

---

Central Bank Comments on Cryptocurrency Risks

Irish Central Bank Deputy Governor Colm Kincaid emphasized the broader risks posed by cryptocurrencies, highlighting their anonymity-enhancing features and cross-border nature:

“The failure of such a system within any financial institution creates an opportunity for criminals to evade detection – and criminals will take that opportunity. Crypto’s technological features make it especially attractive to criminals looking to move funds.”

Kincaid’s remarks underscore the regulatory challenges that arise in the rapidly growing crypto asset market, where monitoring systems must keep pace with evolving risks.

---

Implications for Coinbase and the Crypto Industry

This fine represents one of the largest regulatory penalties for a cryptocurrency exchange in Europe and highlights the importance of robust AML and CTF compliance. Industry experts suggest that cryptocurrency platforms must continuously invest in technology and compliance frameworks to mitigate the risk of regulatory sanctions.

Coinbase has indicated that it has enhanced its systems, strengthened internal controls, and increased testing procedures to prevent future monitoring failures. The settlement serves as a reminder to the global crypto industry about the critical importance of adhering to local regulatory standards, especially in high-volume, cross-border transactions.