Arkham Sends $487 Million in ARKM Tokens to Coinbase Prime Custody for Tax Purposes

Crypto intelligence firm Arkham transferred $487 million ARKMs to Coinbase Custody as part of tax compliance.

The funds have been transferred to Coinbase Custody Prime via Coinbase Custody service. Arkham Intelligence withdrew 304.5 million ARKM tokens valued at around $487.24 million. This amount was sourced from the vesting contract and sent to Coinbase Prime.

Arkham to Comply with Tax Requirements

The transaction in question contained 115.8 million ARKM tokens. These tokens were valued at around $185.28 million which were formerly under Arkham CEO Miguel Morel.

The analytics firm posted an update on its social media account on 17th July noting that the transferred tokens were sent to Coinbase Prime in a bid to complete the tax regulatory requirements.

This transaction coincides with the linear unlocking cycle for investors, consultants, and team members starting 17th July. The daily unlocking volume of ARKM tokens is around 324,200 tokens valued at around $518k. The project has retained the unlocking schedule for the last 36 months and with little changes in the context of the recent infrastructure variations.

Arkham’s Commitment to Regulatory Compliance

Arkham Intelligence reported that the recent fund transfer to Coinbase Prime is part of the regulatory requirement of the firm to ensure regulatory compliance. At the same time, the firm also included the transaction as part of the security measure.

Arkham has sourced Coinbase Prime custody services to remove any probability of security breach. The platform has opted for a stringent security protocol as a way to ensure safety for investors and stakeholders.

When Satoshi Nakamoto introduced Bitcoin white paper, Congress passed a legislation that strengthened the tax reporting obligation for financial intermediaries. The law in question ensured that financial firms disclose tax payments and IRS about tax filing data.

Following this policy, firms were directed to calculate the taxable income on a cost basis meaning calculating the difference between purchase price and sale returns. The same policy is also implemented in crypto capital gains taxes.

Law enforcement firms have also availed Coinbase services. The exchange platform is based in the United States. The firm has assisted with law enforcement agencies in the US to store or despose of cryptocurrencies that were associated with criminal proceedings.

As per the official statement from the US Marshal Service, Coinbase Prime is charged with dissolving funds associated with the FTX demise in a responsible manner. The platform also supervises the task of handling proceeds from the Silk Road.

Digital Chamber Sends a Letter to Vice President Kamala Harris

President Biden announced dropping out of the race nominating his VP Kamala Harris as the new nominee. The Vice president has harbored considerable support from the Democratic Party.

The Digital Chamber penned a letter addressed to the new presidential nominee noting that more than 50 million American citizens have invested in digital assets. The letter addressed to the VP asked the new nominee to deviate from maintaining a stringent stance on the crypto industry.

The open letter was sent to VP Harris on 22nd July and advocated for regulatory cooperation and establishing communication with the industry stakeholders. The letter also listed potential areas of concerns as actionable agenda for Harris’s campaign such as active correspondence, digital asset policy, and engagement of industry leaders.

After the dropout announcement of President Biden crypto markets dipped briefly absorbing pressure from, resulting uncertainty.

However, shortly after Bitcoin prices rallied reaching $68,000. The VP has a strong party presence and yet to secure an official nomination. Thus far there are numerous endorsements from the senior-Democratic leadership to strengthen her position. Harris’s nomination has also put a halt to election uncertainty among American voters.

However, investors and stakeholders are speculating about whether she will opt to continue Biden administration’s anti-crypto stance or usher in a new era of friendlier policies. Thus far, the VP has refrained from addressing the contentious subject. Without her word, voters are likely to go with the current passive stance on the crypto industry.