US Crypto Exchange Coinbase Receives a €21.5 Million Fine from the Irish Central Bank

The Irish central bank has imposed a €21.5 million fine on Coinbase Europe. The crypto exchange allegedly failed for years to properly monitor suspicious transactions, a crucial obligation to prevent money laundering and terrorist financing.

Billions in Transactions not Properly Monitored

Between April 2021 and March 2025, over 30 million customer transactions (PDF) were not properly monitored. In total, this involved over €176 billion in financial flows, approximately one-third of all Coinbase transactions during that period.

Due to errors in the monitoring system, it took almost three years for the company to clear the backlog. Ultimately, Coinbase still reported 2,708 suspicious transactions to the authorities.

According to the central bank, this includes potential cases of money laundering, fraud, drug trafficking, cyberattacks, and even child abuse.

Errors in the System

Coinbase states the problem was caused by three programming errors. As a result, five of the 21 control scenarios designed to detect suspicious transactions were not fully executed. When the error was discovered in 2022, the system was restored within a few weeks, and the company re-checked all transactions.

The fine was set at €30.7 million, but due to a settlement, Coinbase received a 30 percent discount. The company accepted the €21.5 million fine and, according to the central bank, is fully cooperating with the investigation. The decision still needs to be approved by the Irish court.

Central Bank: Crypto Attracts Criminals

According to Colm Kincaid, Deputy Governor of the Irish central bank, strict controls are especially important in the crypto world. “Due to the anonymity and cross-border nature of crypto, it is attractive to criminals who want to move their money. If such control systems fail, criminals seize their opportunity.”

The regulator emphasizes that companies active in crypto are responsible for reporting suspicious transactions. If they fail to do so, they can expect substantial fines.

Coinbase Pledges Improvement

In a statement, Coinbase says it regrets the situation and has since taken additional steps to improve its control and reporting systems.

“We take our anti-money laundering obligations very seriously,” the company stated. “Our goal has always been to be the most reliable, secure, and compliance-focused crypto platform in the world.”