According to CoinMeta, the Irish branch of Coinbase was fined approximately $3.6 million by the Central Bank of Ireland for failing to properly protect customer funds. This is the second regulatory action against the exchange's European operations in less than a year. The regulator stated that Coinbase Ireland was fined 3,252,618 euros for violating Irish electronic currency regulations regarding protection and outsourcing rules. The fine represents a 30% discount from the initial proposed fine of 4,646,597 euros. This penalty is still subject to confirmation by the Irish High Court before it becomes effective. The regulator identified three main shortcomings in Coinbase's fund protection: over-reliance on its U.S. parent company for handling protection procedures under Irish and EU regulations, a lack of sufficient local expertise to oversee the protection of customer funds, and long-term insufficiency of funds in the designated protection accounts. The regulator also pointed out issues with the company's internal controls and noted that no significant changes to protection measures were reported to the regulators. Coinbase Ireland acknowledged these violations.