Coinbase's European Arm Settles $24.7M Penalty Over AML System Deficiencies
A substantial fine imposed on Coinbase's European division highlights the severe repercussions of compliance failures, stemming from critical technical flaws in its transaction monitoring system.
Furedata - Coinbase Europe Limited has finalized a €21.5 million ($24.7 million) settlement with Ireland's Central Bank. The penalty addresses significant deficiencies in the firm's anti-money laundering (AML) transaction monitoring protocols that occurred between 2021 and 2022.
The compliance lapses originated from coding mistakes within the exchange’s internal software. These errors resulted in only a partial screening of certain transactions for suspicious activity, creating a notable gap in its regulatory oversight capabilities for a prolonged period.
The technical glitch affected a staggering volume of trades. According to reports, transactions valued at over $202 billion, representing approximately 31% of the platform's European volume during that time, were not properly scrutinized by the flawed system.
Information detailed by Cointelegraph (November 6, 2025), reveals Coinbase identified the issue through internal testing and rectified it within weeks. The company then conducted a retroactive review, ultimately filing around 2,700 suspicious transaction reports as required by Irish AML law.
The central bank calculated the fine based on Coinbase’s estimated $480 million average annual revenue in Ireland. The specific coding errors prevented the system from correctly flagging crypto addresses that were separated by special characters, a critical technical failure.
In response, Coinbase has significantly bolstered its compliance framework. The exchange implemented stricter pre-deployment software reviews, expanded its scenario testing, and committed to continuous system improvements to detect evolving high-risk financial behaviors more effectively.
This regulatory action is particularly significant given the company's Irish presence. Coinbase established its Dublin office in 2018 and later selected the nation as its primary European Union hub ahead of new Markets in Crypto-Assets (MiCA) regulations taking effect.