Coinbase’s BASE Blockchain Network To Face AML Measures on Launch

Coinbase CEO Expects a 50% Revenue Decline in 2022
  1. New layer-2 network to offer secure, low-cost, and developer-friendly decentralized app building
  2. Coinbase CEO hints at transaction monitoring and AML restrictions
  3. Base created with Optimism’s “OP Stack,” launch expected in Q2 2023

Coinbase’s CEO, Brian Armstrong, has revealed that the company’s new layer-2 blockchain network, Base, may be subject to transaction monitoring and Anti-Money Laundering measures upon launch. 

This new network, which is an Ethereum L2, will offer a secure, low-cost, and developer-friendly way for anyone to build decentralized applications from anywhere. Armstrong stated in an interview on Bloomberg Radio that while Base currently has some centralized components, it will become increasingly decentralized over time.

He indicated that Coinbase would be responsible for monitoring transactions in the beginning and hinted at the imposition of AML restrictions on users of the new layer-2 network. Base is being created with Optimism’s “OP Stack,” which allows for fast Ethereum transactions. Introduced on February 23, Base is currently in the testnet phase, with the launch of Coinbase’s mainnet expected in Q2 of 2023.

This announcement comes amid the growing concerns around cryptocurrency’s potential for money laundering and other illegal activities. However, Coinbase’s efforts to enforce AML measures on its new network could help to alleviate these concerns and promote greater adoption of decentralized applications.

In other news, Kraken, a highly regulated and compliant cryptocurrency exchange, appears to be fed up with the antics of US-based regulators. This time, the exchange will take control of the situation.

In particular, Kraken’s Chief Legal Officer, Marco Santori, stated that the company is preparing to build its own financial institution.

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José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.