Coinbase Ireland Limited accepted a €3,252,618 Central Bank of Ireland penalty over failures in protecting customer money, with the sanction still subject to approval by the country’s High Court.
The Central Bank said the e-money firm admitted breaches involving customer-fund safeguards and oversight of outsourced services. The settlement covers conduct from Nov. 1, 2020, through Aug. 19, 2025, and was reached Oct. 21.
Coinbase Ireland had assigned safeguarding work to a Coinbase Group company based in the United States. The regulator found the Irish operation lacked sufficient local expertise and oversight. It also failed to notify the Central Bank promptly, or at all, about some significant changes to its arrangements.
The notice says underfunding occurred between July 2022 and October 2024. A daily account deficit was recorded from Jan. 1, 2023, through June 27, 2024. The gaps reached €3.4 million on the worst day in 2023 and €5.2 million at the 2024 peak. On average, the deficit equaled 0.54% of the funds the firm was required to safeguard.
The Central Bank said errors in safeguarding data and weaknesses in reconciliation contributed to the failures, alongside inadequate local oversight. Funds connected to Coinbase Ireland customers were held with money associated with other Coinbase entities. Customers of those other entities could also withdraw from the account through Jan. 19, 2024.
The regulator found no evidence of actual consumer losses. It said an insolvency during the period could have delayed customers’ recoveries or left them with less than they were owed. Coinbase Ireland issues and redeems the e-money customers use to fund purchases on the Coinbase Group platform.
The settlement includes a reprimand and a penalty reduced by 30% from €4,646,597 under the regulator’s settlement process. The sanctions will take effect only after High Court confirmation; the notice gives no date for that step.
