In a landmark decision to align with regulatory and fiscal mandates, Arkham has extracted 304.5 million ARKMs, valued at approximately $487.24 million, from its vesting contract, transferring them to Coinbase Prime custody.

According to platform data, this transaction encompasses 115.8 million ARKM tokens, worth $185.28 million, held by Arkham CEO Miguel Morel.

Token Transition to Coinbase Prime

On July 17, Arkham announced via the X social platform that the team’s tokens must be transitioned to Coinbase Prime to ensure compliance with tax payments and regulatory standards starting July 18.

This shift means the tokens’ specific unlocking and transfer status will no longer be visible on the blockchain, enhancing the security and regulatory oversight of these assets.

Read more: German Federal Police Shifts $24 Million in Bitcoin to Kraken and Coinbase

The transfer initiates a linear unlocking cycle for the team, investors, and advisers, commencing on July 17. Currently, the daily unlocking volume for these groups is approximately 324,200 ARKM, valued at $518,000. This process is part of a predefined three-year unlocking schedule, which remains unchanged despite recent developments.

Transferring to Coinbase Prime is a strategic move for Arkham, aligning with the company’s dedication to regulatory adherence and robust security measures. By leveraging Coinbase Prime’s custody services, Arkham ensures the tokens are managed under stringent security protocols, offering peace of mind to investors and stakeholders.

Navigating Regulatory Compliance in Crypto

The same year Satoshi Nakamoto introduced the Bitcoin white paper, the US Congress enacted legislation strengthening tax reporting obligations for financial intermediaries. This law mandates that financial institutions provide taxpayers and the IRS with detailed information on their tax filings.

Under this ruling, companies must calculate taxes based on the ‘cost basis,’ the difference between an asset’s original purchase price and its sale proceeds, akin to current cryptocurrency capital gains tax rules.

Law enforcement agencies have also utilized Coinbase, a US-based crypto exchange, to securely store or dispose of cryptocurrencies seized in connection with criminal investigations.

According to official documents, the U.S. Marshals Service has entrusted Coinbase Prime with handling assets associated with the dissolved FTX cryptocurrency exchange and the infamous Silk Road platform, with the company securing a contract valued at over $32 million.