Coinbase Ireland fined €3.25 million for safeguarding failures

The Central Bank of Ireland has imposed a €3,252,618 fine and a reprimand on Coinbase Ireland Limited for failing to properly safeguard customer funds and for inadequate oversight of outsourced functions. The breaches occurred between November 1, 2020, and August 19, 2025, under Ireland’s Electronic Money Regulations.

The regulator found that Coinbase Ireland placed “excessive reliance” on its U.S.-based parent company to manage safeguarding processes and lacked the local expertise necessary to oversee these operations. Due to poor system design and insufficient control testing, the firm’s safeguarding accounts were underfunded for extended periods. At its peak in 2024, the daily deficit reached approximately €5.2 million.

Additionally, the investigation revealed that customer funds were occasionally mixed with those of other Coinbase entities. For instance, approximately 30 institutional customers were instructed to deposit funds into a Coinbase Inc. account rather than the Irish subsidiary’s account for roughly 19 months.

Coinbase has admitted to the breaches and reached a settlement, which included a 30% reduction from the original €4.65 million penalty. The company stated that all issues have been remediated and emphasized that no customers suffered financial losses or lost access to their funds. The sanctions are subject to final confirmation by the Irish High Court.