Coinbase CEO hints its new layer-2 network could include AML measures
Coinbase chief executive Brian Armstrong has hinted that the firm’s new Layer-2 blockchain network Base may be subjected to transaction monitoring and anti-money laundering measures at launch.
In an interview with Joe Weisenthal on Bloomberg Radio on Mar. 6, Armstrong acknowledged that Base has some centralized components today, adding “it will be more and more decentralized over time.”
However, he then suggested that there will be transaction monitoring and AML requirements for users of the new layer-2 network.
He suggested that Coinbase will have a responsibility in terms of transaction monitoring in the early days, adding:
Armstrong’s comments were also highlighted up by decentralization advocate Chris Blec in a Twitter post on Mar. 7.
Odd Lots @TheStalwart directly asked @coinbase CEO @brian_armstrong how CB will navigate KYC/AML obligations on @BuildOnBase.Armstrong tap danced around an answer. In the last 10 seconds he hints there WILL be some sort of KYC at launch.Wish Joe had pressed for more clarity. pic.twitter.com/Q4TBV5MbS0
Base is an Ethereum layer-2 network that offers a secure, low-cost, developer-friendly way for users to build decentralized apps, according to Coinbase.
It is being developed with the “OP Stack” used by Optimism which will enable high-speed transactions on Ethereum. Base was unveiled on Feb. 23 and is currently in the testnet phase, Coinbase has yet to provide a mainnet launch date but it is expected in Q2, 2023.
1/ We’re excited to announce @BuildOnBase.Base is an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps. Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy.
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