Arkham transfers $487M ARKMs to Coinbase Prime for tax compliance
In a significant move to comply with regulatory and tax requirements, Arkham has withdrawn 304.5 million ARMS, valued at approximately $487.24 million, from the consensus contract and transferred the rights to Coinbase Prime.
According to the information on his 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 was previously contacted via the X social platform on July 17 and explained that starting July 18, the group's tokens must be transferred to Coinbase Prime to ensure proper tax payments and regulatory compliance.
This transfer means that the unique opening and transfer status of these tokens is not visible on the blockchain, which improves the security and regulatory control of the assets.
The transfer marks the start of a linear opening cycle for the group, investors and advisors, which began on July 17. The daily opening volume for these groups is approximately 324,200 ARKM, valued at $518,000. This process is part of a pre-set three-year opening programme, which will remain unchanged despite recent developments.
The move to Coinbase Prime is a strategic move for Arkham, along with the company's commitment to regulation and strong security measures. Using Coinbase Prime's security services, Arkham ensures that its tokens are governed by strong security protocols, giving investors and stakeholders peace of mind.
Related: How to track and report crypto transactions for tax purposes
Regulatory compliance in crypto
In the same year Satoshi Nakamoto introduced the Bitcoin white paper, the US Congress passed a law that strengthens the tax reporting obligations of financial intermediaries. This new law mandates that financial institutions provide taxpayers and the IRS with detailed information on their tax filings.
According to this decision, companies will have to calculate the tax based on the difference between the initial purchase price of the asset and the sale proceeds, which is similar to the current cryptocurrency capital gains tax rules.
Law enforcement agencies have used the services of Coinbase, a US-based crypto exchange, to securely store or dispose of cryptocurrencies seized in connection with criminal investigations.
According to official documents, the US Marshals Service entrusted Coinbase Prime with the responsibility of monitoring assets related to the FTX cryptocurrency exchange and the popular Silk Road platform. The company received a contract worth more than $32 million.
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