Coinbase’s Base Blockchain to Consider AML Measures Amid Regulatory Pressure
In the fast-paced world of cryptocurrencies, Coinbase CEO Brian Armstrong has recently hinted at the potential implementation of transaction monitoring and anti-money laundering (AML) measures on the firm’s new layer-2 blockchain network Base.
The news comes as the cryptocurrency industry faces a number of challenges, including falling coin prices and regulatory scrutiny.
During a interview with Joe Weisenthal on Bloomberg Radio on March 6, Armstrong acknowledged that Base currently has some centralized components, but suggested that it will become more decentralized over time.
He dropped a subtle suggestion that the new layer-2 network would come with certain obligations for users, including transaction monitoring and AML requirements. Moreover, he emphasized Coinbase’s responsibility to oversee transaction monitoring in the initial stages of the network’s adoption.
Armstrong said:
The centralized players are the ones that are probably going to have the most responsibility to avoid money laundering issues and to have transaction monitoring programs and things like that.
This move is in line with the increasing regulatory scrutiny that the cryptocurrency industry is currently facing due to incidents of money laundering and fraud.
Coinbase’s Base is a layer-2 network built on top of Ethereum, providing a cost-effective and secure environment that allows developers to create decentralized applications with ease.
The platform is designed to allow faster and cheaper transactions compared to the Ethereum network, while improving the user experience.
Coinbase CEO hints at proactive regulatory measures
Armstrong’s comments about transaction monitoring and AML measures at Base suggest that Coinbase is taking a proactive approach to regulatory compliance, especially in light of the recent crackdown on cryptocurrency-related fraud and fraudulent activities.
However, the move may also raise concerns among cryptocurrency enthusiasts who prioritize over-regulation and compliance with privacy and decentralization.
Despite the cryptocurrency industry’s challenges, Armstrong remains optimistic about the future. Throughout the interview, he discussed various topics including the trajectory of the industry, his predictions for its future direction, the obstacles it currently faces and other related matters.
Armstrong believes that cryptocurrencies have the potential to revolutionize the financial industry and that today’s challenges are only temporary setbacks on the road to wider adoption.
As the cryptocurrency industry continues to evolve, it is likely that we will see more companies and platforms taking a proactive approach to regulatory compliance. While this may disappoint some cryptocurrency enthusiasts, it is necessary for the industry to gain wider acceptance and legitimacy in the eyes of regulators and traditional financial institutions.
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