Ireland’s financial regulator announced a significant enforcement action against Coinbase Europe following a detailed review of the exchange’s transaction monitoring framework. The central bank determined that faulty configuration of the AML screening tools resulted in the failure to monitor more than 30 million distinct transactions valued at over €176 billion. This lapse persisted across a full twelve-month cycle, exposing the exchange to elevated compliance and reputational risks.
According to the regulator’s findings, the affected period saw the non-identification of 2,708 transactions that merited further scrutiny under AML and counter-terror financing rules. Upon completion of the remediation work, Coinbase reported the late submission of these suspicious transaction reports to law enforcement and financial intelligence units. The Irish central bank emphasized that delays of this magnitude erode the integrity of the financial system and hamper efforts to detect and disrupt illicit finance networks associated with drug trafficking, fraud, cybercrime and child exploitation.
The €21.5 million fine represents one of the largest penalties levied against a crypto-asset service provider to date and signals regulators’ readiness to enforce traditional banking standards on digital currency platforms. Coinbase has since upgraded its compliance infrastructure with enhanced rule-sets, improved system configurations and increased staffing of its global AML team. In a public statement, the exchange acknowledged the shortcomings, affirmed its commitment to maintaining rigorous controls and outlined plans for ongoing independent audits.
Market participants are closely watching the broader implications for the crypto industry, as major jurisdictions weigh similar enforcement strategies. The action underscores regulators’ resolve to hold digital asset intermediaries to equivalence with conventional financial institutions. Firms operating in Europe should anticipate intensifying scrutiny of AML protocols, transaction monitoring capabilities and timely escalation of red-flagged activity.
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