Coinbase CEO Brian Armstrong stated on March 6 that his firm’s layer-2 community, Base, will doubtless function transaction monitoring and anti-money laundering measures.
Base will function compliance measures
Armstrong stated throughout an interview with Bloomberg:
“Base has some centralized parts right this moment however it’s going to turn into an increasing number of decentralized over time because it grows. I believe we’ve got duties by way of transaction monitoring … issues like that that we’ve got to take a look at within the early days.”
Armstrong instructed that centralized actors will doubtless turn into answerable for avoiding cash laundering and sustaining transaction monitoring applications over time. It’s unclear whether or not Armstrong supposed this assertion to use to centralized actors working on Base or to centralized actors basically.
Although Base can be open to all builders, Coinbase’s preliminary announcement instructed that Base can be a “house for Coinbase’s on-chain merchandise.” Presumably, any present merchandise that Coinbase integrates with Base will preserve their unique KYC/AML measures.
That earlier announcement additionally instructed that Base will turn into “progressively decentralized” however, in doing so, didn’t recommend an absence of regulatory compliance.
What Is Coinbase’s Base?
Coinbase initially introduced Base on Feb. 23. At the moment, the corporate stated it plans to construct the platform in collaboration with Optimism, an present layer-2 challenge for Ethereum. Coinbase will be part of Optimism as a core developer and use the OP Stack.
The corporate moreover famous at the moment that Base will work with Ethereum itself, different layer-2 networks, and appropriate layer-1 blockchains comparable to Solana.
Base is at present in testnet, obtainable to builders however not but relevant to precise use circumstances. Coinbase has not introduced a mainnet launch date.
Armstrong famous right this moment that Base is meant to extend scalability and value on Ethereum and associated networks, driving transaction charges down to at least one cent or much less.
Base doesn’t have its personal token, opposite to earlier hypothesis.
