Central Bank fines Coinbase Ireland over fund safeguards
The Central Bank of Ireland has imposed a €3.25 million fine on Coinbase Ireland Limited for significant breaches in safeguarding customer funds and outsourcing governance. The enforcement follows a settlement over failures between 2020 and 2025 impacting financial system integrity.
Source:
Central Bank of Ireland
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⏱️ 1 min read
The Central Bank of Ireland has levied a fine of €3,252,618 against Coinbase Ireland Limited for violations of its safeguarding and outsourcing obligations under the Electronic Money Regulations 2011 (EMR 2011). This sanction follows a settlement agreed on 21 October 2026, concerning breaches that occurred between 1 November 2020 and 19 August 2025.
Coinbase Ireland, an authorised e-money institution within the global Coinbase Group, facilitates the issuing and redemption of e-money used by customers to acquire crypto assets on the platform. The Central Bank found that Coinbase Ireland failed to implement a sufficiently robust outsourcing governance framework, inadequately safeguarded customer funds—resulting in prolonged underfunding of designated safeguarding accounts—and lacked proper internal controls and escalation procedures to notify the regulator of significant safeguarding changes.
As part of the settlement, Coinbase Ireland accepted the findings and agreed to pay a monetary penalty reduced by 30% from €4,646,597 to €3,252,618. Central Bank Director of Enforcement Karen O'Leary emphasised the imperative for firms to maintain a strong compliance culture, safeguard customers’ funds rigorously, and uphold commitments made during authorisation to protect the financial system's integrity. The sanctions await High Court confirmation to take effect.
Coinbase Ireland, an authorised e-money institution within the global Coinbase Group, facilitates the issuing and redemption of e-money used by customers to acquire crypto assets on the platform. The Central Bank found that Coinbase Ireland failed to implement a sufficiently robust outsourcing governance framework, inadequately safeguarded customer funds—resulting in prolonged underfunding of designated safeguarding accounts—and lacked proper internal controls and escalation procedures to notify the regulator of significant safeguarding changes.
As part of the settlement, Coinbase Ireland accepted the findings and agreed to pay a monetary penalty reduced by 30% from €4,646,597 to €3,252,618. Central Bank Director of Enforcement Karen O'Leary emphasised the imperative for firms to maintain a strong compliance culture, safeguard customers’ funds rigorously, and uphold commitments made during authorisation to protect the financial system's integrity. The sanctions await High Court confirmation to take effect.
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