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 elements at this time however it’s going to turn out to be increasingly decentralized over time because it grows. I believe we have now obligations when it comes to transaction monitoring … issues like that that we have now to take a look at within the early days.”
Armstrong recommended that centralized actors will doubtless turn out to be chargeable for avoiding cash laundering and sustaining transaction monitoring packages over time. It’s unclear whether or not Armstrong meant this assertion to use to centralized actors working on Base or to centralized actors typically.
Although Base shall be open to all builders, Coinbase’s preliminary announcement recommended that Base shall be a “house for Coinbase’s on-chain merchandise.” Presumably, any present merchandise that Coinbase integrates with Base will keep their unique KYC/AML measures.
That earlier announcement additionally recommended that Base will turn out to be “progressively decentralized” however, in doing so, didn’t counsel a scarcity 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 undertaking for Ethereum. Coinbase will be a 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 similar to Solana.
Base is at the moment in testnet, accessible to builders however not but relevant to precise use circumstances. Coinbase has not introduced a mainnet launch date.
Armstrong famous at this time that Base is meant to extend scalability and usefulness on Ethereum and associated networks, driving transaction charges down to 1 cent or much less.
Base doesn’t have its personal token, opposite to earlier hypothesis.