Argentina's Ministry of Justice has made history by approving the country's first company registered with cryptocurrency capital—a landmark decision for crypto adoption in Latin American business.
South America's First Bitcoin-Based Company Registration
Through the General Inspection of Justice (IGJ), Argentina's Ministry of Justice authorized the registration of a company funded by Bitcoin (BTC) and USD Coin (USDC). Submitted by Allende & Brea law firm, the startup holds an initial capital of approximately $500 USD.
Key details:
- Capital structure: 0.00457621 BTC ($302.50) + 194.99 USDC
- Total value: $497.49 at time of registration
- Legal precedent: First Latin American country to recognize crypto as valid corporate capital
Argentina's New Virtual Asset Regulations
This milestone follows IGJ's recent resolution establishing clear procedures for companies using virtual assets. The agency now recognizes cryptocurrencies as:
- Tradable digital securities
- Valid payment instruments
- Approved investment vehicles
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Registration Process: Mandatory Use of Local Exchanges
The BTC/USDC capital originated from Argentine-regulated platforms:
- Lemon Cash (personal wallet)
- Ripio (corporate wallet)
Pablo Palazzi, partner at Allende & Brea, explained the unique verification process requiring:
- Accounting certification of asset values
- Notarized validation of wallet transactions
Asset Seizure Requirements
Argentine law mandates that corporate assets must be "confiscatable." While Bitcoin's decentralized nature presents challenges:
- Exchange-held crypto satisfies this requirement
- Payment commitments from licensed exchanges serve as legal alternatives
Potential to Attract Inflation-Hedging Businesses
This precedent creates new opportunities for:
- Startups seeking inflation-resistant capital structures
- Enterprises exploring crypto-based financial operations
- Regional adoption across Latin American markets
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FAQ: Argentina's Crypto Company Registration
Q: Can foreign companies register with crypto capital in Argentina?
A: Currently, the process requires using Argentine-regulated exchanges, but foreign entities may qualify through local partnerships.
Q: How does crypto registration help against inflation?
A: Dollar-pegged stablecoins and Bitcoin provide alternatives to the volatile Argentine peso, preserving purchasing power.
Q: What other cryptocurrencies can be used?
A: The IGJ resolution technically applies to all virtual assets, but initial approvals focus on high-liquidity coins like BTC and USDC.
Q: Are there tax implications?
A: Cryptocurrency remains taxable property under Argentine law, requiring proper capital gains reporting.
Q: How long does the approval process take?
A: Current cases show 4-6 weeks with complete documentation and exchange verification.
Q: Will this lead to more crypto-friendly policies?
A: Legal experts anticipate progressive reforms as institutional adoption grows.
Disclaimer: Cryptocurrency investments carry substantial risk, including possible loss of principal. Carefully consider your risk tolerance before investing.