Coinbase Ireland faces €3.25M fine over customer fund safeguards

Coinbase Ireland has agreed to a €3.25 million fine over failures to protect customer funds and oversee outsourced controls, with the sanctions awaiting High Court approval. Summary Daily safeguarding shortfalls reached €5.2 million in 2024, according to reporting citing the settlement documents. The regulator found insufficient local oversight of safeguarding functions outsourced to Coinbase’s US group. Coinbase says the historical problems are fully resolved and customers suffered no financial losses. E-money services remain with Coinbase Ireland, while Luxembourg handles the company’s European crypto services. The Central Bank of Ireland announced the settlement on Oct. 22, covering breaches of the Electronic Money Regulations 2011 between Nov. 1, 2020, and Aug. 19, 2025. Coinbase Ireland accepted a reprimand and admitted the contraventions, the regulator said. Following an agreement reached on Oct. 21, the bank reduced a €4,646,597 penalty by 30% to €3,252,618. The regulator said the sanctions will take effect once the High Court confirms them. Coinbase Ireland’s failures left customer safeguards short FinanceFeeds reported that errors in the systems used to calculate daily saf...