In a significant move to comply with regulatory and tax requirements, Arkham transfers $487.24 million worth of ARKM tokens to Coinbase Prime custody.
Points
- Arkham transferred 304
.5 million ARKMs, valued at approximately $487.24 million, to Coinbase Prime custody.
– The transfer is part of Arkham’s strategy to ensure regulatory compliance and tax payments.
– This transaction marks the beginning of a three-year unlocking schedule for team, investor, and advisor tokens.
In a significant move to comply with regulatory and tax requirements, Arkham has withdrawn 304.5 million ARKMs, valued at approximately $487.24 million, from its vesting contract and transferred them to Coinbase Prime custody.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.
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.
Regulatory 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.
解説
- Token Custody: Transferring tokens to Coinbase Prime ensures they are held securely, complying with regulatory requirements and protecting investor interests.
- Regulatory Compliance: Adhering to tax and regulatory obligations is crucial for cryptocurrency companies. This includes accurate tax reporting and ensuring the security of digital assets.
- Law Enforcement Collaboration: Utilizing trusted exchanges like Coinbase for handling confiscated assets demonstrates the importance of secure and compliant custodial services in the cryptocurrency industry.