Central Bank of Ireland fines Coinbase Ireland €3.25 million over safeguarding failures

The Central Bank of Ireland has fined Coinbase Ireland Limited €3,252,618 and reprimanded it for breaching its safeguarding and outsourcing obligations under the Electronic Money Regulations 2011 between 1 November 2020 and 19 August 2025, the central bank said on Thursday 22 October.

Coinbase Ireland, part of the US-based Coinbase group, issues e-money that customers use to buy crypto assets on the group’s trading platform. The central bank said the company placed “excessive reliance” on the US-based Coinbase group to run its safeguarding processes, lacked enough local expertise to oversee the management of customer funds, and allowed its designated safeguarding account to be underfunded “for lengthy periods of time”.

Coinbase Ireland admitted the breaches and agreed to the facts in a settlement reached on 21 October, according to the central bank. The penalty was set at €4,646,597 and reduced by a 30% settlement discount. The sanctions must be confirmed by the High Court.

“Payment and e-money firms have a fundamental obligation to fully safeguard customers’ funds,” said Karen O’Leary, the central bank’s director of enforcement. “We have no tolerance for weaknesses in safeguarding arrangements.”

RTÉ reported that it is the second fine the central bank has imposed on Coinbase. The central bank said it was its 164th enforcement outcome, bringing its total fines to more than €432 million.