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Coinbase would prefer to disable staking rather than enabling on-chain censorship: Brian Armstrong

As a consequence of the recent prohibition placed on the cryptocurrency mixing tool Tornado Cash and the subsequent arrest of the developer of Tornado Cash, there has been a growing debate regarding whether or not crypto service providers will choose decentralisation or censorship as a form of compliance.

When asked if Coinbase and others would opt to comply with compliance requirements and impose protocol-level censorship or shut down staking services, Brain Armstrong, the CEO of Coinbase, selected the latter response when he was given the choice.

Due to Ethereum’s transition from its existing proof-of-work (PoW) blockchain to a proof-of-stake (PoS) mining consensus, this subject has assumed a more significant role in recent discussions. A user pointed out that more than 66% of the validators on the Beacon Chain will adhere to the regulations set forth by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury. This was pointed out in light of the fact that the transition will take place in less than a month.

The activities of major cryptocurrency exchanges like Coinbase and Kraken, which are also significant ETH validators on the Beacon Chain, have been the subject of increasing rumors and suppositions recently.

Many people had the impression that centralised cryptocurrency exchanges would choose to take the path of least resistance and filter transactions at the protocol level rather than block individual transactions originating from prohibited cryptocurrency mixers like Tornado Cash.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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