Arkham Withdraws 304.5 Million ARKMs and Transfers to Coinbase Prime for Regulatory Compliance
Arkham, a prominent cryptocurrency company, has made a significant move to comply with regulatory and tax requirements by withdrawing a staggering 304.5 million ARKMs, valued at approximately $487.24 million, from its vesting contract. These tokens have been transferred to Coinbase Prime custody, marking a strategic step towards ensuring regulatory adherence and robust security measures.
The transfer includes 115.8 million ARKM tokens, worth $185.28 million, owned by Arkham CEO Miguel Morel. This transaction comes after Arkham communicated via the X social platform on July 17, stating that the team’s tokens must be transferred to Coinbase Prime to ensure proper tax payments and regulatory compliance from July 18 onwards.
By transferring these tokens to Coinbase Prime, Arkham ensures that the specific unlocking and transfer status of the assets will no longer be visible on the blockchain, enhancing security and regulatory oversight. This move also marks the beginning of a linear unlocking cycle for the team, investors, and advisers, with a daily unlocking volume of approximately 324,200 ARKM tokens, valued at $518,000.
The decision to utilize Coinbase Prime’s custody services underscores Arkham’s commitment to regulatory compliance and security. By managing the tokens under stringent security protocols, Arkham provides peace of mind to investors and stakeholders.
This move towards regulatory compliance in the crypto space comes at a time when governments are increasingly focusing on tax reporting obligations for financial intermediaries. The US Congress enacted legislation mandating detailed tax reporting, similar to current cryptocurrency capital gains tax rules. Law enforcement agencies have also turned to platforms like Coinbase for securely storing or disposing of confiscated cryptocurrencies in criminal investigations.
Overall, Arkham’s transfer of tokens to Coinbase Prime exemplifies the company’s dedication to regulatory adherence and security measures in the ever-evolving cryptocurrency landscape.