Coinbase Ireland fined €3.25 million over fund safeguards

• Coinbase Ireland received a €3.25 million fine from the Central Bank of Ireland over customer-fund safeguarding failures.
• The regulator identified control breaches involving customer funds and outsourcing arrangements.
• The enforcement action highlights regulatory scrutiny of crypto firms handling customer assets in Ireland.

Coinbase Ireland Limited, part of Coinbase Global Inc (NASDAQ:COIN), was fined €3.25 million for breaching customer-fund safeguarding and outsourcing rules between November 2020 and August 2025.

The Central Bank of Ireland’s action follows a settlement reached on 21 October 2026, with the regulator citing weaknesses in oversight, internal controls and the protection of customer funds.

“Firms in Ireland must have the appropriate culture and expertise to comply with the rules, respond to risks and to protect customer interests,” according to Central Bank Director of Enforcement Karen O'Leary.

The regulator found that Coinbase Ireland relied excessively on its US-based group for safeguarding processes and lacked sufficient local expertise to oversee customer funds.

It also found that weak system design and insufficient control testing left the designated safeguarding account underfunded for extended periods.

The Central Bank set the original penalty at €4.65 million before applying a 30% settlement discount, reducing the fine to €3.25 million.

Coinbase Ireland admitted the breaches and accepted the sanctions, which require High Court confirmation before taking effect.

The enforcement action reinforces Ireland’s regulatory focus on safeguarding customer money at firms providing electronic-money and cryptocurrency services.