The Central Bank of Ireland has fined Coinbase's Irish subsidiary €3.25 million (approximately $3.6 million) over defects in its outsourcing governance framework and inadequate client fund safeguarding measures. Regulators found the firm relied excessively on the US Coinbase group to carry out safeguarding processes, with system design flaws and insufficient control testing leading to persistent shortfalls in designated client fund accounts.
A Coinbase spokesperson attributed the issues primarily to the 2023 US banking crisis, when the company directed customers to deposit funds into other Coinbase bank accounts to mitigate losses from potential bank failures. This practice resulted in customer funds being commingled with those held by other Coinbase entities, breaching regulatory requirements. The penalty follows a €21.5 million fine imposed on Coinbase Europe last year for anti-money laundering and counter-terrorist financing transaction monitoring violations.
Coinbase Irish Subsidiary Fined €3.25 Million for Client Fund Safeguarding Breaches
Aviso Legal: O conteúdo disponibilizado no Phemex News é apenas para fins informativos. Não garantimos a qualidade, precisão ou integridade das informações provenientes de artigos de terceiros. Este conteúdo não constitui aconselhamento financeiro ou de investimento. Recomendamos fortemente que você realize suas próprias pesquisas e consulte um consultor financeiro qualificado antes de tomar decisões de investimento.
