Argentina Registers First Company to Include Bitcoin and USDC in Its Capital Investment

The Argentine Ministry of Justice has officially registered the first company in the country to include cryptocurrencies, specifically bitcoin (BTC) and USD Coin (USDC), as part of its capital investment.

The first company in Argentina to integrate cryptocurrencies into its capital investment has now been officially registered by the Argentine Ministry of Justice. Specifically, the company’s capital will include bitcoin (BTC) and USD Coin (USDC).

This registration was facilitated by the General Inspection of Justice (IGJ) and marks a significant development in the integration of digital assets into traditional corporate structures in South America.

“The General Inspection of Justice has approved the first company with capitals integrated in cryptocurrencies. Thanks to the modernization driven by this Ministry, we made history. We are the first country in Latin America to achieve this milestone.”

— Ministry of Justice (@jusgobar) July 25, 2024

The registration process was handled by the law firm Allende & Brea, which contributed an initial capital of approximately $500, split into 0.00457621 BTC (valued at $302.50) and $194.99 in USDC, based on the exchange rates on the day of registration. This amounted to a total contribution of $497.49, which is equivalent to 470,625 Argentine pesos at the official exchange rate.

In Argentina, incorporating a company with such capital involves legally formalizing a business where the partners have provided a predetermined amount of financial resources or assets to support the company’s operations and demonstrate their commitment to the business.

This registration follows the recent resolution by the IGJ that established the procedure for companies wishing to accept social contributions in virtual assets and cryptocurrencies. The IGJ defines cryptocurrencies as digital representations of value that can be traded, digitally transferred, and utilized for payments or investments.

To complete the registration process, two cryptocurrency wallets were created through local exchanges Lemon Cash and Ripio, which adhere to regulations set by the National Securities Commission (CNV Argentina). The company opened a personal wallet on Lemon and a corporate one on Ripio, which enabled the transfer of BTC and USDC.

“Unfortunately, it is only possible to integrate the capital of the society using IOUs from exchanges and not with bitcoin.”

— Adam Dub ⚡️ (@dubdam) July 25, 2024

As with other regulations, the procedure included a public accountant who verified the value of the cryptocurrencies at the time of the transaction and a notary who confirmed the existence of the accounts and the legitimacy of the transfer.

A crucial legal requirement for the registration was the ability to confiscate the assets if necessary, as outlined in the General Companies Law. This demonstrates the adaptability of the legal framework to accommodate crypto assets that can be controlled and potentially seized if not managed directly by the owner.

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