Central Bank of Ireland Imposes $3.6 Million Fine on Coinbase Ireland for Regulatory Breaches

Coinbase has been fined $3.6 million for violations related to customer protection and supervision, the regulator revealed in a Thursday statement.

Coinbase Ireland acknowledged the identified breaches and accepted the uncontested facts, agreeing to the penalty. The notice stated the company improperly relied on its US affiliate to outsource some services, breaching regulations concerning oversight and client fund protection.

The current Coinbase user agreement discloses: “We use a variety of service providers (both within the Coinbase group and external) under outsourcing arrangements to help deliver Coinbase services effectively and with quality.”

Karen O’Leary, the Central Bank’s Director of Enforcement, emphasized that companies operating in Ireland must foster the right culture and expertise to comply with regulations, manage risks, and safeguard customer interests.

She added that this enforcement action highlights the Central Bank’s commitment to continuous customer protection and maintaining the financial system’s integrity.

Before the sanctions take effect, they must receive approval from Ireland’s High Court. Coinbase Ireland began operating in 2018, obtained an electronic money license from the Central Bank in 2019, and registered as a virtual asset service provider in 2022.