BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

Coinbase’s New Layer 2 Networks Could Include AML Measures

BlockNews Team by BlockNews Team
March 7, 2023
in BUSINESS, CRYPTO, MEDIA, TECHNOLOGY
Reading Time: 3 mins read
1
SHARES
14
VIEWS
Share on XShare in TelegramShare on Reddit
  • Coinbase creates a new L2 network.
  • A new layer-2 Ethereum Network Base could bring a new future for the DeFi community.
  • Coinbase accused it of moving towards the same path it had previously revolted against.

The CEO of Coinbase, Brian Armstrong, announced his belief that centralized firms have responsibilities to monitor the transactions that go on and also help carry out Anti-Money Laundering checks. 

At its inception, Coinbase’s innovation, the layer-2 blockchain network base, could be subjected to transaction surveillance and extensive anti-money laundering inspections. 

Brian confirmed to a reporter on Bloomberg radio that Coinbase currently has some centralized components but said they hope to make it more decentralized in the future. 

Nonetheless, the CEO stated that Coinbase would implement transaction monitoring and AML regulations for the use of its layer-2 network for additional security. Coinbase will also be in charge of monitoring transactions during the early stages of the innovation.

Coinbase’s latest innovation is called Base, a layer-2 Ethereum network that offers a low-cost, developer-friendly, and safe way for users to build decentralized apps, according to information dropped by Coinbase.

The network is currently being developed using “OP Stack” used by Optimism, and it will enable high-speed transactions on Ethereum. 

The network was unveiled on February 23, and it is currently in its net test phase, with no information from Coinbase on its primary net launch date but with an expectation for it to launch by Q2 of 2023.

Decentralization advocate Chris Blec raised concerns about Coinbase’s latest creation in a blog post before the launch of the test net. He claimed that the layer-2 infrastructure was highly centralized and that Coinbase would use Sequencers, nodes that are used to construct and execute Layer-2 blocks while users’ actions are being transmitted from Layer 2 to Layer 1. 

Coinbase, a licensed money transmitter platform being the sole sequencer for Base, raised concerns about if Base would also put the requirement for the Know Your Customers, which would put it on the list as the first-ever Layer 2 to do so. 

Coinbase has neither declined nor confirmed the speculations on whether they would be implementing the KYC and AML measures. Blec claimed that DeFi was heading towards being controlled by the same entities it was created to revolt against.

The crypto community has, however, taken a different approach to the news of the creation of Base, with many viewing it as a vote of confidence for Ethereum as the network was built with it in mind. 

Conclusion

Coinbase has yet to respond to news outlets on the other aspects of the innovation, like if Base would require KYC. Still, without that information, many of the crypto community have expressed joy at creating the Base Layer-2 network. 

Coinbase has also yet to put out information on when the main net of Base would be launched. 

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: BaseCoinbasecryptoCrypto ExchangeLayer 2
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Kraken Teams Up With Legion to Launch MiCA-Compliant Token Sales – Here’s What It Means for Crypto Investors
CRYPTO

Kraken Teams Up With Legion to Launch MiCA-Compliant Token Sales – Here’s What It Means for Crypto Investors

September 18, 2025
XRP and Dogecoin ETFs Launch in U.S. – Here’s Why Investors Are Watching Closely
CRYPTO

XRP and Dogecoin ETFs Launch in U.S. – Here’s Why Investors Are Watching Closely

September 18, 2025
Shibarium Hack: $4.1M Exploit Forces Bridge Shutdown – Here’s What You Need to Know
CRYPTO

Shibarium Hack: $4.1M Exploit Forces Bridge Shutdown – Here’s What You Need to Know

September 18, 2025
Dogecoin Breakout Alert: Can DOGE Really Soar 111% By September’s End? Here’s What You Need to Know
CRYPTO

Dogecoin Breakout Alert: Can DOGE Really Soar 111% By September’s End? Here’s What You Need to Know

September 18, 2025
Ripple CEO Drops Bombshell: XRP Could Join White House Crypto Stockpile and ETF Approval Soon
CRYPTO

Ripple CEO Drops Bombshell: XRP Could Join White House Crypto Stockpile and ETF Approval Soon

September 18, 2025
Solana Faces “Most Important” Sell Wall Amid Whale Sell-Off Concerns
CRYPTO

Solana Faces “Most Important” Sell Wall Amid Whale Sell-Off Concerns

September 18, 2025
Load More

Related News

Kraken Teams Up With Legion to Launch MiCA-Compliant Token Sales – Here’s What It Means for Crypto Investors

Kraken Teams Up With Legion to Launch MiCA-Compliant Token Sales – Here’s What It Means for Crypto Investors

September 18, 2025
XRP and Dogecoin ETFs Launch in U.S. – Here’s Why Investors Are Watching Closely

XRP and Dogecoin ETFs Launch in U.S. – Here’s Why Investors Are Watching Closely

September 18, 2025
Shibarium Hack: $4.1M Exploit Forces Bridge Shutdown – Here’s What You Need to Know

Shibarium Hack: $4.1M Exploit Forces Bridge Shutdown – Here’s What You Need to Know

September 18, 2025
Ripple’s RLUSD Explodes 10x as DBS, SBI & Templeton Unveil Tokenized Yield System – Here’s What It Means for Investors

Ripple’s RLUSD Explodes 10x as DBS, SBI & Templeton Unveil Tokenized Yield System – Here’s What It Means for Investors

September 18, 2025
XRP Price Prediction September 2025: Will Ripple’s Token Follow BNB to New Highs? Here’s What You Need to Know

XRP Price Prediction September 2025: Will Ripple’s Token Follow BNB to New Highs? Here’s What You Need to Know

September 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews