Overview
- Settlement records show about 30 million transactions went unmonitored from April 23, 2021 to April 29, 2022 after data configuration failures disabled 5 of 21 high‑risk scenarios in an outsourced system.
- The unmonitored activity represented roughly 31% of Coinbase Europe’s volume during the period, totaling about €173 billion.
- Coinbase Europe did not detect or disclose the failures during its 2022 VASP registration, managers were fully briefed in 2023, and the Central Bank deemed its oversight of the parent ineffective.
- One admitted breach continued through March 19, 2025, leaving 184,790 transactions without additional monitoring, and the rescreening effort took nearly three years, which the regulator said undermined later reports.
- The firm’s Irish VASP registration will lapse at year‑end 2025 as operations shift to Luxembourg under new licensing, while Coinbase in 2025 urged the U.S. Treasury to formally recognize KYT and blockchain analytics.