According to Decrypt, the Central Bank of Ireland has fined Coinbase Ireland approximately €3,252,618 for failing to maintain adequate funds in its safeguarding account. The penalty relates to the exchange’s reliance on its U.S.-based parent company and insufficient funding of the safeguarding mechanism designated for customer assets held in Ireland.
This is Coinbase Ireland’s second enforcement action by the Central Bank of Ireland within the past year, following a prior penalty related to regulatory compliance matters. The fine addresses a specific concern about the level of reserves maintained for safeguarded customer funds, which fell short of required standards due to overreliance on support from the company’s U.S. parent.
The Central Bank of Ireland determined that Coinbase Ireland did not sufficiently fund its safeguarding arrangement independently, thereby increasing risk to customer assets under Irish regulatory oversight. The amount reflects the official penalty imposed for this regulatory breach.
