The Central Bank of Ireland fined Coinbase Europe €21.5 million for failures in an outsourced transaction monitoring system that left roughly 30 million transactions (about €173 billion, ~31% of volume) unmonitored from April 2021–April 2022. Coinbase Europe did not detect or disclose the issue during its December 2022 VASP application; senior management were only fully briefed in 2023. Rescreening of affected transactions took nearly three years, weakening suspicious-activity reporting. The regulator found oversight of the U.S. parent’s systems ineffective, required remediation, and will allow the VASP registration to lapse at end‑2025 as operations relocate to Luxembourg. Coinbase has lobbied the U.S. Treasury to recognize KYT and blockchain analytics as AML tools.

Central Bank of Ireland imposed a €21.5M fine for failures in an outsourced transaction-monitoring system that left ~30M transactions (~€173B, ~31% of volume) unmonitored (Apr 2021–Apr 2022); Coinbase Europe failed to detect/disclose issues during its Dec 2022 VASP application; senior management were fully briefed only in 2023; rescreening took nearly three years undermining SAR effectiveness; regulator found oversight ineffective and will let VASP registration lapse end‑2025 as the firm relocates to Luxembourg.