Ireland Issues Landmark Fine for Crypto AML, Indicating Tighter Regulatory Scrutiny

The Central Bank of Ireland has issued a record €21.5 million ($25 million) penalty to

Europe Limited due to widespread shortcomings in its anti-money laundering (AML) and counter-terrorist financing (CFT) measures from April 2021 to March 2025 . This is the first time the regulator has taken disciplinary action against a crypto firm, highlighting the growing regulatory focus on the industry as Europe increases oversight .

The investigation revealed that Coinbase Europe, part of the U.S.-headquartered Coinbase Group, failed to oversee more than 30 million transactions worth €176 billion ($200 billion) during a period marked by technical issues. These unchecked transactions represented 31% of the company’s total activity at that time

. The failures were linked to flaws in Coinbase’s transaction monitoring software, which allowed suspicious activities—including potential money laundering, fraud, and cybercrime—to go unnoticed for almost three years . The company later submitted 2,708 suspicious transaction reports (STRs) to the Irish Financial Intelligence Unit but acknowledged delays in resolving the problem .

Colm Kincaid, Deputy Governor of the Central Bank responsible for Consumer and Investor Protection, stressed the dangers such lapses create. “When these systems fail in any financial institution, it opens the door for criminals to go undetected—and they will take advantage of that,” he said . The regulator pointed out that the anonymous and cross-border features of crypto assets require “strong safeguards” to prevent abuse .

Coinbase Europe acknowledged its responsibility for the violations and accepted the fine, which was reduced by 30% under the Undisputed Facts Settlement arrangement

. The initial penalty of €30.7 million was lowered to €21.5 million, pending approval by Ireland’s High Court. The Central Bank noted this is the 162nd case under its administrative sanctions regime, with total fines surpassing €428 million ($495 million) since the program began .

This enforcement comes as European authorities ramp up regulation of the crypto sector. In June 2025, Coinbase obtained a Markets in Crypto-Assets (MiCA) license in Luxembourg, while the European Anti-Money Laundering Agency (AMLA) introduced stricter rules in July 2025, including bans on anonymous wallets and privacy coins

. These changes are part of a broader effort to bring crypto businesses in line with established financial regulations.

Since then, Coinbase has upgraded its transaction monitoring, adding more comprehensive testing and expanding the range of scenarios it monitors

. The company reaffirmed its dedication to compliance, stating it corrected the coding flaws within weeks of discovery and conducted retrospective reviews of high-risk transactions .

This penalty sends a clear warning to the crypto sector. As regulators place greater emphasis on enforcing AML standards, companies must prioritize real-time monitoring and strong internal controls to avoid sanctions. As Kincaid remarked, “Effective AML relies on prompt monitoring and reporting—any delay can seriously hinder law enforcement’s ability to fight crime”

.