Ireland's regulator says Coinbase's Irish unit commingled customer money and let its safeguarding account run short for more than a year

The Central Bank of Ireland has fined Coinbase ’s Irish subsidiary €3.25 million for failing to properly safeguard customer funds.

The fine was announced on October 22, 2026. It covers breaches of safeguarding and outsourcing rules under Ireland’s Electronic Money Regulations 2011.

The penalty did not start at €3.25 million. The regulator first set it at €4.65 million.

Coinbase then received a 30% settlement discount after admitting to the contraventions.

First, outsourcing without oversight. Coinbase Ireland handed safeguarding functions to its US parent company but did not adequately supervise how that work was done.

Second, commingling. Customer funds were mixed with money that should have been kept separate.

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Third, persistent shortfalls. Systemic deficiencies caused daily funding shortfalls in the designated safeguarding account. Those shortfalls continued for more than a year.

The maximum shortfall reached €3.4 million in 2023 and €5.2 million in 2024.

Coinbase Ireland self-reported the violations to the regulator.

The company also maintains that no customers suffered financial losses during the affected period. It says no one lost access to their funds either.

Coinbase Ireland is an authorized electronic money institution. It offers crypto asset and wallet services to customers.

This is not Coinbase’s first run-in with the Irish regulator. In November 2025, the Central Bank fined a Coinbase entity €21.5 million over anti-money laundering and transaction monitoring failures.

The latest action underlines the Central Bank’s focus on governance, local expertise, and segregation of client assets. It places particular weight on how outsourcing arrangements are run in the crypto sector.

The Central Bank has made clear that if the parent performs a regulated function, the local entity must be able to prove it is actively watching how that function is carried out.

The settlement terms also illustrate how regulators want companies to behave. Coinbase self-reported and admitted the breaches, and the fine was cut by 30% as a result.