Coinbase’s Base will likely feature transaction monitoring, AML measures
Coinbase CEO Brian Armstrong stated on March 6 that his firm’s layer-2 community, Base, will possible characteristic transaction monitoring and anti-money laundering measures.
Base will characteristic compliance measures
Armstrong stated throughout an interview with Bloomberg:
“Base has some centralized elements in the present day however it’s going to develop into increasingly more 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 urged that centralized actors will possible develop into chargeable for avoiding cash laundering and sustaining transaction monitoring applications over time. It’s unclear whether or not Armstrong meant this assertion to use to centralized actors working on Base or to centralized actors generally.
Although Base shall be open to all builders, Coinbase’s preliminary announcement urged that Base shall be a “residence for Coinbase’s on-chain merchandise.” Presumably, any current merchandise that Coinbase integrates with Base will preserve their unique KYC/AML measures.
That earlier announcement additionally urged that Base will develop into “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 current layer-2 mission 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 equivalent 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 in the present day 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.