{"id":46286,"date":"2023-03-07T05:05:42","date_gmt":"2023-03-07T09:05:42","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=46286"},"modified":"2023-03-07T05:05:46","modified_gmt":"2023-03-07T09:05:46","slug":"coinbase-new-layer-2-network-may-include-aml-measures","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/coinbase-new-layer-2-network-may-include-aml-measures\/","title":{"rendered":"Coinbase new layer-2 network may include AML measures"},"content":{"rendered":"\n

Brian Armstrong, the CEO of Coinbase<\/a>, has made a suggestion that the company's upcoming layer-2 blockchain network Base may be launched with transaction monitoring and anti-money laundering controls.<\/p>\n\n\n\n

\"Coinbase
Coinbase new layer-2 network may include AML measures<\/figcaption><\/figure>\n\n\n\n

Armstrong stated that Base currently has some centralized components in an interview with Joe Weisenthal on Bloomberg Radio on March 6, but he also said that “it will be more and more decentralized over time.”<\/p>\n\n\n\n

But, he went on to say that users of the new layer-2 network \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>will be subject to transaction monitoring and AML rules.<\/p>\n\n\n\n

In the beginning, he said, Coinbase will be responsible for transaction monitoring. He continued:<\/p>\n\n\n\n

\n

\u201cI 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.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Chris Blec, a proponent of decentralization, brought attention to Armstrong's remarks in a March 7 tweet.<\/p>\n\n\n\n

\n

Odd Lots @TheStalwart<\/use><\/svg><\/span><\/a> directly asked @coinbase<\/use><\/svg><\/span><\/a> CEO @brian_armstrong<\/use><\/svg><\/span><\/a> how CB will navigate KYC\/AML obligations on @BuildOnBase<\/use><\/svg><\/span><\/a>.

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<\/use><\/svg><\/span><\/a><\/p>— CS Bastiat \u2696\ufe0f (@CSBastiat) March 6, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

According to Coinbase, Base is an Ethereum layer-2 network that provides customers with a safe, affordable, and developer-friendly means to create decentralized apps.<\/p>\n\n\n\n

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 <\/a>date, it is anticipated to occur in Q2, 2023.<\/p>\n\n\n\n

\n

1\/ \ud83d\udd35 We\u2019re excited to announce @BuildOnBase<\/use><\/svg><\/span><\/a>.

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. pic.twitter.com\/RmwZFJzGGs<\/use><\/svg><\/span><\/a><\/p>— Coinbase \ud83d\udee1\ufe0f (@coinbase) February 23, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

In a blog post published in late February, five days after the company revealed Base, Blec issued a warning on Coinbase's most recent layer-2 offering.<\/p>\n\n\n\n

Because of the employment of “sequencers,” which are “nodes that generate and execute L2 blocks while relaying users' activities from L2 to L1,” he said that layer-2 infrastructure was extremely centralized.<\/p>\n\n\n\n

The single sequencer for Base will be run by Coinbase, a licensed money transmitter. This raised the issue of whether Base will become the first-ever L2 to formally impose Know Your Customer (KYC) rules.<\/p>\n\n\n\n

In terms of whether Base would be putting KYC and AML procedures<\/a> in place, Coinbase hasn't confirmed or denied it. Comment from Blec:<\/p>\n\n\n\n

\n

\u201cIsn\u2019t it ironic that \u2018DeFi\u2019 is heading toward being controlled by the entities that it was originally supposed to be battling?\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

It was, according to the cryptocurrency community and supporters of Ethereum, a “huge confidence vote” for the platform.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brian Armstrong, the CEO of Coinbase, has made a suggestion that the company’s upcoming layer-2 blockchain network Base may be launched with transaction monitoring and anti-money laundering controls. Armstrong stated that Base currently has some centralized components in an interview with Joe Weisenthal on Bloomberg Radio on March 6, but he also said that “it […]<\/p>\n","protected":false},"author":12,"featured_media":11128,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[13662,150,13045],"class_list":["post-46286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-base","tag-coinbase","tag-layer-2-networks"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/09\/Coinbase-users-can-now-deposit-paychecks-directly-into-their-accounts.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=46286"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/11128"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=46286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=46286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=46286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}