The Central Bank of Ireland has imposed a €3.25 million fine on Coinbase Ireland for violating safeguarding and outsourcing regulations under the Electronic Money Regulations 2011. The breaches occurred between November 2020 and August 2025, marking the second time Coinbase has faced penalties from the regulator. In November 2025, the exchange was fined €21.5 million for failing to meet anti-money laundering and counter-terrorist financing obligations.
The latest fine stems from Coinbase Ireland's inadequate outsourcing governance framework, excessive reliance on its US-based parent company for safeguarding processes, and insufficient local expertise to manage customer funds. The Central Bank found that the exchange failed to safeguard customer funds properly, leading to underfunded safeguarding accounts for extended periods. Additionally, Coinbase lacked proper internal controls and escalation procedures to report material changes to the regulator.
Coinbase Ireland acknowledged the breaches, stating that they arose during efforts to protect customers during periods of disruption, such as the 2023 US banking crisis and Brexit. The company claimed no customers suffered financial losses or were unable to access their funds due to these issues. Coinbase said it self-identified and reported the problems in January 2024 and has since resolved them.
The Central Bank determined that a €4.65 million sanction was warranted, but the fine was reduced to €3.25 million under a settlement discount. Karen O'Leary, the Central Bank's Director of Enforcement, emphasized the importance of firms having the appropriate culture and expertise to comply with regulations and protect customer interests. She stressed that payment and e-money firms must fully safeguard customer funds and adhere to commitments made during the authorisation process.