{"id":560413,"date":"2023-03-07T08:14:42","date_gmt":"2023-03-07T05:14:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-ceo-hints-its-new-layer-2-network-could-include-aml-measures\/"},"modified":"2023-03-07T08:14:42","modified_gmt":"2023-03-07T05:14:42","slug":"coinbase-ceo-hints-its-new-layer-2-network-could-include-aml-measures","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-ceo-hints-its-new-layer-2-network-could-include-aml-measures\/","title":{"rendered":"# Coinbase CEO hints its new layer-2 network could include AML measures"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2554642d5d1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2554642d5d1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-ceo-hints-its-new-layer-2-network-could-include-aml-measures\/#%E2%80%9D_Coinbase_CEO_hints_its_new_layer-2_network_could_include_AML_measures_%E2%80%9C\" >&#8221; Coinbase CEO hints its new layer-2 network could include AML measures &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Coinbase_CEO_hints_its_new_layer-2_network_could_include_AML_measures_%E2%80%9C\"><\/span>&#8221; Coinbase CEO hints its new layer-2 network could include AML measures &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvY2YyNDg3NzYtMjk5ZC00MzM4LWIwMmEtM2RiZTc1MTRkYTlkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Coinbase chief executive Brian Armstrong has hinted that the firm\u2019s new Layer-2 blockchain network Base may be subjected to transaction monitoring and anti-money laundering measures at launch.<\/p>\n<p>In an<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheStalwart\/status\/1632672728279916544\"> interview<\/a> with Joe Weisenthal on Bloomberg Radio on Mar. 6, Armstrong acknowledged that Base has some centralized components today, adding \u201cit will be more and more decentralized over time.\u201d<\/p>\n<p>However, he then suggested that there will be transaction monitoring and AML requirements for users of the new layer-2 network.<\/p>\n<p>He suggested that Coinbase will have a responsibility in terms of transaction monitoring in the early days, adding:<\/p>\n<blockquote><p>\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<\/p><\/blockquote>\n<p>Armstrong\u2019s comments were also highlighted up by decentralization advocate Chris Blec in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> post on Mar. 7.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Odd Lots <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheStalwart?ref_src=twsrc%5Etfw\">@TheStalwart<\/a> directly asked <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/coinbase?ref_src=twsrc%5Etfw\">@coinbase<\/a> CEO <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/brian_armstrong?ref_src=twsrc%5Etfw\">@brian_armstrong<\/a> how CB will navigate KYC\/AML obligations on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BuildOnBase?ref_src=twsrc%5Etfw\">@BuildOnBase<\/a>.<\/p>\n<p>Armstrong tap danced around an answer. In the last 10 seconds he hints there WILL be some sort of KYC at launch.<\/p>\n<p>Wish Joe had pressed for more clarity. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Q4TBV5MbS0\">pic.twitter.com\/Q4TBV5MbS0<\/a><\/p>\n<p>\u2014 Chris Blec (@ChrisBlec) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ChrisBlec\/status\/1632851504175501312?ref_src=twsrc%5Etfw\">March 6, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Base is an Ethereum layer-2 network that offers a secure, low-cost, developer-friendly way for users to build decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s, according to Coinbase. <\/p>\n<p>It is being developed with the \u201cOP Stack\u201d used by Optimism which will enable high-speed transactions on Ethereum. Base was unveiled on Feb. 23 and is currently in the testnet phase, Coinbase has yet to provide a mainnet launch date but it is expected in Q2, 2023.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/  We\u2019re excited to announce <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BuildOnBase?ref_src=twsrc%5Etfw\">@BuildOnBase<\/a>.<\/p>\n<p>Base is an Ethereum L2 that offers a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps. <\/p>\n<p>Our goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/RmwZFJzGGs\">pic.twitter.com\/RmwZFJzGGs<\/a><\/p>\n<p>\u2014 Coinbase (@coinbase) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/coinbase\/status\/1628760201254903809?ref_src=twsrc%5Etfw\">February 23, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Blec has previously warned about Coinbase\u2019s latest layer-2 offering in a<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blec.report\/what-coinbase-isnt-telling-you-about-base\/\"> blog post<\/a> released in late February, five days after the firm announced Base. <\/p>\n<p>He said that layer-2 infrastructure was quite centralized because they use \u201csequencers\u201d which are \u201cnodes that construct and execute L2 blocks while transmitting users\u2019 actions from L2 to L1.\u201d<\/p>\n<p>Coinbase, a licensed money transmitter, will be operating the sole sequencer for Base. This raised the question of whether Base would also legally require know-your-customer (KYC) requirements making it the first ever L2 to do so.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>L2 is crucial to Ethereum decentralization, censorship resistance, says researcher<\/em><\/strong><\/p>\n<p>Coinbase hasn\u2019t confirmed or denied whether Base would be implementing KYC and AML measures. Blec commented: <\/p>\n<blockquote><p>\u201cIsn\u2019t it ironic that \u201cDeFi\u201d is heading toward being controlled by the entities that it was originally supposed to be battling?\u201d<\/p><\/blockquote>\n<p>However, the crypto community and Ethereum advocates have said Base was a \u201cmassive confidence vote\u201d for Ethereum.<\/p>\n<p>Cointelegraph reached out to Coinbase for comment but has not received a response by the time of publication.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/coinbase-ceo-hints-its-new-layer-2-network-could-include-aml-measures\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Coinbase CEO hints its new layer-2 network could include AML measures &#8220; Coinbase chief executive Brian Armstrong has hinted that the firm\u2019s new Layer-2 blockchain network Base may be subjected to transaction monitoring and anti-money laundering measures at launch. In an interview with Joe Weisenthal on Bloomberg Radio on Mar. 6, Armstrong acknowledged that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":560414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/cf248776-299d-4338-b02a-3dbe7514da9d.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74956,74983,74891,95119,74355],"class_list":["post-560413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-coinbase","tag-decentralization","tag-ethereum","tag-layer2","tag-adoption"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/560413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=560413"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/560413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/560414"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=560413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=560413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=560413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}