Coinbase exec claims Layer-2 Network could include AML measures

ambcrypto.com:

Brian Armstrong, CEO of Coinbase, has suggested that the company’s upcoming layer-2 blockchain network Base may be launched with transaction monitoring and anti-money laundering controls.

Armstrong claimed that Base currently has some centralized components in an interview with Joe Weisenthal on Bloomberg Radio. However, according to the exec, “it will be more and more decentralized over time.” That being said, Armstrong clarified that users of the new layer-2 network will be subject to transaction monitoring and AML rules.

According to Coinbase’s CEO, the crypto-exchange will be responsible for transaction monitoring. He continued,

“I think that the centralized actors are the ones that are probably going to have the most responsibility to avoid money laundering issues and having transaction monitoring programs and things like that.”

Chris Blec, a proponent of decentralization, brought attention to Armstrong’s remarks in a March 7 tweet. 

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

— Chris Blec (@ChrisBlec) March 6, 2023

Base is an Ethereum layer-2 network that provides customers with a safe, affordable, and developer-friendly means to create decentralized apps. It is being created using Optimism’s “OP Stack,” which will allow for quick transactions on Ethereum. Base entered the testnet phase on February 23 after its unveiling. Although Coinbase hasn’t yet announced a mainnet launch date, it is anticipated to be in Q2 2023.

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