Central Bank fines crypto firm €21.5m for compliance failures
The Central Bank of Ireland has imposed a €21.5 million fine on Coinbase Europe for failing to properly monitor over 30 million transactions for potential money laundering and terrorist financing over a year.
Significance of the penalty
This fine is the fourth-largest financial penalty ever issued by the Irish financial regulator and marks the first sanction against a crypto firm by the Central Bank.
“Crypto has particular technological features which, together with its anonymity-enhancing capabilities and cross-border nature, makes it especially attractive to criminals looking to move their funds,” said Colm Kincaid, Deputy Governor of the Central Bank responsible for consumer and investor protection.
“This is why it is especially important that firms engaged in crypto services have robust controls in place to identify and report suspicious transactions.”
About Coinbase Europe and its parent group
- Coinbase Europe was authorized by the Central Bank less than three years ago.
- It is one of three Irish-regulated entities within the Coinbase Group.
- Coinbase Group, led by CEO and co-founder Brian Armstrong, is the largest cryptocurrency exchange in the US and the world’s biggest custodian of Bitcoin.
- The group employs around 100 people in Ireland.
Coinbase’s case highlights the regulatory scrutiny increasing on crypto firms to ensure robust anti-money laundering controls are in place.
Author's summary: The Central Bank of Ireland fined Coinbase Europe €21.5 million for weak anti-money laundering oversight, marking a significant regulatory move in crypto governance.