Quick Breakdown
- Coinbase Europe reached a €21.5M settlement with the Central Bank of Ireland over TMS coding errors.
- Errors affected 5 of 21 transaction monitoring scenarios, leading to 2,700 Suspicious Transaction Reports.
- Coinbase has enhanced oversight, testing, and new scenarios to strengthen crypto compliance and AML controls.
Coinbase Europe Limited (CBEL) has reached a settlement with the Central Bank of Ireland (CBI) following technical errors in its transaction monitoring system (TMS) that affected compliance processes in 2021 and 2022. The settlement, which includes a €21.5 million fine, underscores the increasing regulatory scrutiny of crypto platforms in Europe.
Coinbase Europe Limited settled with the Central Bank of Ireland over a 2021–2022 coding error in its transaction monitoring system that left some transactions partially unscreened. Coinbase later filed about 2,700 STRs involving €13 million. The CBI imposed a €21.5 million…
— Wu Blockchain (@WuBlockchain) November 7, 2025
Coding errors trigger compliance review
CBEL’s TMS is designed to detect suspicious crypto transactions through automated “scenarios” that flag unusual activity for further review. In 2021 and 2022, three coding errors resulted in five of 21 monitoring scenarios missing some transactions, including those with crypto addresses separated by special characters. While the majority of CBEL’s compliance controls remained effective, the errors prompted a full re-review of affected transactions.
The investigation uncovered approximately 185,000 transactions requiring further review. From these, CBEL filed roughly 2,700 Suspicious Transaction Reports (STRs), covering transactions valued at around €13 million. The settlement does not imply that these transactions involved criminal activity.
Enhanced oversight and compliance measures
After detecting the errors, Coinbase fixed the TMS scenarios within weeks and implemented measures to prevent recurrence. CBEL strengthened testing protocols, increased oversight of system changes, and introduced new scenarios to monitor evolving high-risk activity. The company emphasized that ongoing investments in transaction monitoring are aimed at ensuring robust anti-money laundering (AML) compliance and maintaining trust across its European operations.
The settlement highlights the crucial importance of reliable monitoring systems in crypto compliance. As regulators worldwide continue to tighten AML oversight, Coinbase’s actions reflect broader industry efforts to meet evolving standards while safeguarding customer transactions.
In a separate event, Coinbase CEO Brian Armstrong surprised users on Kalshi and Polymarket during the company’s third-quarter earnings call by releasing a list of popular crypto terms just before the session ended, automatically resolving related prediction markets. The move sparked both amusement and debate among traders.
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