Argentina Launches First Company With Share Capital in Bitcoin
Date: 2024-08-01 Author: Oliver Abernathy Categories: IN WORLD
At the end of July 2024, Argentina registered its first company with a share capital partially contributed in cryptocurrency. The General Inspectorate of Justice in Buenos Aires has approved a resolution allowing the use of crypto assets to contribute to companies.
A firm called Allende & Brea has become the first law firm in the country to use Bitcoin and USDC as part of its share capital. The total share capital is $500, consisting of 0.00457621 BTC (approximately $300) and 194.99 USDC. This is equivalent to about 470,000 Argentine pesos.
Registration process
The company's co-founders transferred crypto assets through Lemon Cash and Ripio. These platforms are supervised by Argentina's National Securities Commission (CNV), which guarantees the legality of the source of funds.
Pablo Palazzi, a partner at Allende & Brea, described the registration process as unconventional. First, the company's participants had to create a wallet on Lemon Cash, then open a corporate account on Ripio. The process of assessing and transferring assets was certified by a notary.
Argentina has become the first country in the world to officially allow companies to receive "social contributions" in crypto assets. The General Inspectorate of Justice (IGJ) approved the corresponding resolution in mid-July 2024. This step significantly simplifies the process of creating and liquidating companies, facilitating the attraction of local and foreign investments.
Benefits of the new rules
IGJ emphasizes that the new rules represent a significant stimulus for economic development and support for social initiatives:
“These changes are aimed at encouraging and developing local and foreign investment, which will help to revive the economy and support social actions carried out by civil society organizations.”
In addition to the possibility of making deposits in crypto assets, Argentina has also adopted a decree on concluding contracts with payment in digital assets and legalizing the issuance of its own cryptocurrencies by local authorities. These steps highlight the country's commitment to integrating cryptocurrencies into the economic and legal systems, opening up new horizons for business and investment.
Argentina is taking an important step towards modernizing its financial and economic landscape by providing support for innovative solutions in the field of cryptocurrencies and blockchain technologies.
