Coinbase CEO Brian Armstrong has indicated that the company's forthcoming Ethereum layer-2 network, Base, could feature transaction monitoring and anti-money laundering (AML) measures upon launch. Armstrong disclosed during an interview with Bloomberg Radio that Base has some centralized components at present, but noted that it will gradually become more decentralized.

However, he said that Coinbase has a responsibility for transaction monitoring during the initial phases. Base is currently in the testnet phase, and Coinbase has yet to announce a mainnet launch date, but it is expected in Q2 2023. It is unclear whether Base will implement know-your-customer (KYC) requirements, which decentralization advocate Chris Blec has previously raised as a concern. Nonetheless, Ethereum enthusiasts have lauded Base as a vote of confidence in the network.

Coinbase has been pushing to expand its offerings in the decentralized finance (DeFi) space and improve its reputation as a regulator-friendly platform. Armstrong's remarks suggest that the company is willing to comply with regulations, which could be important in winning over regulators and traditional financial institutions. Nevertheless, some in the crypto community have expressed concern that transaction monitoring and AML measures could compromise users' privacy and the network's decentralized nature.