Code Error Costs Coinbase $24.7M in Ireland

Core Points - The Central Bank of Ireland has imposed a fine of nearly €21.5 million ($24.7 million) on Coinbase Europe Limited for failing to monitor money laundering and terrorist financing effectively [1][2] - The penalty is attributed to coding errors in the transaction monitoring system that affected operations during 2021 and 2022 [2][6] - Coinbase's average annual revenue from 2021 to 2024 was reviewed to determine the fine's value, totaling €417 million [3] Compliance and Operations - Coinbase is a registered Virtual Asset Service Provider (VASP) in Europe and is required to monitor customer transactions for suspicious activities [3][4] - The company failed to supervise approximately 31 transactions over a 12-month period, with a total value exceeding €176 billion [5] - Despite the settlement, Coinbase is committed to regulatory compliance and has made efforts to rectify coding errors in its Transaction Monitoring System, although some loopholes remain [6] Strategic Moves - Coinbase has been expanding its operations, including a recent investment in CoinDCX, a major cryptocurrency exchange in India, and the acquisition of Echo, an on-chain capital raising platform [7]