Amaka Nwaokocha14 hours agoArkham transfers $487M ARKMs to Coinbase Prime for tax complianceAs the unlocking process progresses, Coinbase Custody will play a crucial role in managing the vesting of these tokens.4429 Total views24 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksIn a significant move to comply with regulatory and tax requirements, Arkham has withdrawn 304.5 million ARKMs, valued at approximately $487.24 million, from its vesting contract and transferred them to Coinbase Prime custody.
According to the data on its platform, this transaction includes 115.8 million ARKM tokens, worth $185.28 million, owned by Arkham CEO Miguel Morel.Token transfer to Coinbase Prime
Arkham previously communicated via the X social platform on July 17 and clarified that the team’s tokens must be transferred to Coinbase Prime to ensure proper tax payments and regulatory compliance from July 18 onward.
This transfer means that these tokens’ specific unlocking and transfer status will no longer be visible on the blockchain, enhancing the security and regulatory oversight of the assets.
The transfer marks the beginning of a linear unlocking cycle for the team, investors, and advisers, which commenced on July 17. These groups’ current daily unlocking volume is approximately 324,200 ARKM, valued at $518,000. This process is part of a preset three-year unlocking schedule, which remains unchanged despite the recent developments.Source: Arkham Intel
The transfer to Coinbase Prime is a strategic step for Arkham, aligning with the company’s commitment to regulatory adherence and robust security measures. Using Coinbase Prime’s custody services, Arkham ensures that the tokens are managed under stringent security protocols, offering peace of mind to investors and stakeholders.
Related:How to track and report crypto transactions for tax purposesRegulatory compliance in crypto
In the same year Satoshi Nakamoto introduced the Bitcoin white paper, the US Congress enacted legislation strengthening tax reporting obligations for financial intermediaries. This new law mandated that financial institutions provide taxpayers and the IRS with detailed information on their tax filings.
Under this ruling, companies must calculate taxes based on ‘cost basis," the difference between an asset’s original purchase price and sale proceeds, similar to current cryptocurrency capital gains tax rules.
Law enforcement agencies have also utilized the services of Coinbase, a US-based crypto exchange, to securely store or dispose of cryptocurrencies confiscated in connection with criminal investigations.
According to official documents, the U.S. Marshals Service has entrusted Coinbase Prime with the responsibility of handling assets associated with the dissolved FTX cryptocurrency exchange and the infamous Silk Road platform. The company received a contract valued at over $32 million.
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