Central Bank of Ireland Fines Coinbase Unit €3.25 Million for Customer Fund Safeguarding Failures

The Central Bank of Ireland fined Coinbase Ireland Limited €3.25 million (or $3.65 million) for failing to safeguard customer funds between November 2020 and August 2025 under Ireland’s Electronic Money Regulations. The failures included excessive reliance on its US parent for safeguarding controls, prolonged underfunding of its safeguarding account due to poor system design, and a lack of adequate process to notify the regulator of material changes, as stated by Karen O’Leary, the Central Bank’s director of enforcement. Coinbase stated in a blog post that it self-reported many issues in January 2024 and fixed most underlying control issues that same year, emphasizing that no customer lost money or access to funds.