Coinbase Europe Reaches Settlement With Central Bank of Ireland Over AML Controls
The Central Bank of Ireland has announced a €21.46 million settlement with Coinbase Europe following a multi-year review of the cryptocurrency platform’s anti-money laundering and counter-terrorist financing controls. The regulator determined that Coinbase’s automated monitoring systems did not fully detect or escalate certain suspicious transaction patterns between April 2021 and March 2025. As a result, more than 30 million transactions, representing billions of euros in value, were not screened in line with regulatory expectations.
According to the Central Bank, the monitoring issues stemmed from a combination of coding errors and insufficient calibration of automated controls. These lapses caused some customer transactions to bypass enhanced scrutiny that would typically trigger internal alerts or suspicious transaction reports. While Coinbase had compliance frameworks in place, the regulator noted that the company’s monitoring systems did not scale adequately as customer activity increased across Europe.
The Central Bank stated that Coinbase cooperated with the investigation and initiated corrective measures once the deficiencies were identified. This cooperation contributed to a reduction in the final penalty from an initial amount that would have exceeded €30 million. The regulator emphasized that the settlement serves as a reminder that digital asset service providers must maintain monitoring controls that evolve alongside technological and operational growth.
Coinbase response and compliance remediation
Coinbase acknowledged the regulatory findings and accepted the settlement terms. The company stated that the underlying issues were not deliberate but the result of technical errors in automated screening logic during 2021 and 2022. later than identifying the gaps, Coinbase undertook a comprehensive retrospective review of historical activity, which led to the filing of approximately 2,700 additional suspicious transaction reports.
Coinbase emphasized that it has since upgraded its transaction monitoring systems, expanded compliance staffing, and implemented new governance processes to ensure stronger oversight. The platform noted that compliance remains a core component of its global strategy, particularly as it viewks to maintain regulated operations in Europe, the United States, and other international markets.
Industry context and regulatory landscape
The settlement comes as European regulators continue to increase scrutiny of cryptocurrency platforms and digital asset service providers. The ongoing rollout of the Markets in Crypto-Assets (MiCA) framework across the European Union is expected to standardize operational, reporting, and risk management requirements for platforms operating in the region. Regulators have signaled that adherence to anti-money laundering rules will be a central component of compliance expectations.
Industry analysts note that enforcement actions such as the Coinbase settlement reflect a broader shift toward aligning digital asset platforms with regulatory standards previously applied to banks and brokerages. As trading volumes increase and institutional adoption expands, authorities are placing greater emphasis on robust surveillance systems capable of identifying illicit activity across large and complex transaction flows.
Coinbase stated that it remains committed to maintaining regulatory transparency and strengthening compliance infrastructure as the company continues to serve customers across Europe and develop new trading and custody products. The Central Bank of Ireland reiterated that digital asset firms operating in the region must invest in scalable monitoring systems to ensure market integrity and financial security.
