TWC's 4Rs: Regulation, Reporting, Risk & RegTech

3 news to start your week: October 26

Written by TWC Staff | Mon, Oct 26, 2026

Central Bank fines Irish-based unit of crypto giant Coinbase €3.3m

The Irish Times

The Central Bank of Ireland has penalized a second Irish-regulated subsidiary of Coinbase Global, one of the largest operators of crypto asset exchanges in the world.

Coinbase Ireland, a licensed electronic money firm, received a €3.25 million fine for regulatory breaches. The regulator found that the firm relied too heavily on its US parent company for outsourced services, did not adequately safeguard customer funds, and had shortcomings in its governance. The fine is still subject to confirmation by the High Court.

This penalty follows a €21.5 million fine the Central Bank previously imposed on Coinbase Europe, a virtual asset service provider (VASP), for failing to properly monitor more than 30 million transactions for money laundering or terrorist financing over the span of one year.

The Irish VASP registration of Coinbase Europe lapsed at the end of last year, as the group relocated its activities to Luxembourg. The move came as the EU transitioned from national VASP registration regimes to a harmonized authorization framework under the Markets in Crypto-Assets Regulation, known as MiCA.

According to the Central Bank, Coinbase Ireland allowed its users’ funds to be commingled with funds held elsewhere for a period of four years, even though the Irish entity had explicitly committed, when it was authorized in 2019, to maintaining robust and automated safeguards. The regulator said this failure raised the risk that those funds could be lost.
 

Argentine judge dismisses case against Milei over alleged crypto scam

Le Monde

On Friday, a federal judge threw out a criminal case against Argentine President Javier Milei and his sister Karina, who had been accused of promoting a suspected cryptocurrency scam that caused investors losses of at least $100 million.

In a ruling reviewed by Agence France-Presse (AFP), Judge Marcelo Martinez de Giorgi stated that the reported events do not amount to a criminal offense.

In February 2025, Milei praised the $LIBRA meme coin in a social media post, writing that the world wanted to invest in Argentina. He removed the post a few hours later, after the currency collapsed. Milei subsequently denied having promoted the virtual currency, stating that he did not know the details of the project.

Industry experts have described the operation as a “rug pull,” a type of scam in which developers launch a crypto token, draw in investors, and then rapidly cash out. The investigation aimed to establish whether a coordinated scheme had occurred and whether the president had been involved. Nine other individuals under investigation were also cleared.

In his ruling, the judge wrote that the losses suffered by investors and the rise and fall of the currency’s price were not enough to establish fraud.

A.I. Discovered a Critical Security Flaw Underpinning Websites

The New York Times

Security researchers working with advanced artificial intelligence models from OpenAI uncovered major bugs in a widely used piece of internet software, raising fears worldwide of significant disruptions for consumers and businesses.

The Trump administration, along with several governments in Europe and Asia, warned that every organization relying on the software, known as PHP, should immediately install the updates released on Wednesday to patch the flaws. By some estimates, roughly 70 percent of all websites and web applications use PHP, although recent data suggests its adoption is declining.

Although the fixes are readily available, their public release effectively gives hackers a road map, since they could easily reverse engineer the patches and launch attacks before businesses, governments, and individuals are able to protect their systems. According to experts, successful attacks could allow hackers to take control of servers, steal private data, and deface websites.

Security agencies, including the National Security Agency, advised companies to take their systems offline if they could not apply a patch right away, in an effort to block attacks. Some government websites in Europe followed this advice, making certain services unavailable.

The disclosure added to concerns that have been mounting over the past six months about the potential of A.I. to disrupt cybersecurity unless security weaknesses are addressed.