The Central Bank of Ireland has reached a settlement with Coinbase Ireland Limited over breaches of safeguarding and outsourcing obligations between Nov. 1, 2020, and Aug. 19, 2025. The settlement includes a reprimand and a EUR 3,252,618 penalty, subject to High Court confirmation. Coinbase Ireland, an electronic money institution within the Coinbase Group, admitted the breaches, which included prolonged underfunding of its designated safeguarding account. The failures combined excessive reliance on the U.S.-based Coinbase Group to implement safeguarding processes and controls with insufficient local expertise to oversee the management and protection of customer funds. Inadequate system design and control testing allowed the safeguarding account to remain underfunded for lengthy periods. Weak internal controls, escalation procedures and governance also prevented Coinbase Ireland from adequately identifying and reporting material changes concerning safeguarding to the central bank. The settlement was reached on Oct. 21, 2026, and Coinbase Ireland accepted the sanctions. The monetary penalty was reduced from EUR 4,646,597 through a 30% settlement discount. The sanctions will take effect once confirmed by the High Court.
Central Bank of Ireland agrees EUR 3.25 million penalty for Coinbase Ireland over safeguarding and outsourcing breaches
The Central Bank of Ireland has agreed a reprimand and EUR 3,252,618 penalty with Coinbase Ireland Limited for safeguarding and outsourcing breaches between November 2020 and August 2025, subject to High Court confirmation. Excessive reliance on its U.S.-based group, insufficient local oversight and inadequate controls contributed to prolonged underfunding of its safeguarding account and failures to identify and report material safeguarding changes. Coinbase Ireland admitted the breaches and received a 30% settlement discount.