For the first time in Argentina, a law firm says a regulator has allowed it to register a company whose capital consists partly of Bitcoin (BTC) and USD Coin (USDC). According to media outlet Infobae , one of the company’s partners put up 195 USDC and 0.00457621 BTC (just over $303) as “initial capital.”
The deal was eventually given the green light by the General Inspection of Justice (IGJ), the body that oversees company registration in Argentina. Although the amount is relatively low, it represents a legal breakthrough for law firms and cryptocurrency holders in Argentina.
Pablo Palazzi, a partner at law firm Allende and Brea, explained how the deal was finalized. Palazzi said that when companies use non-cash assets, such as land or real estate, as capital, they must use accounting research to prove the value of those assets.
Lawyers then help transfer ownership of these assets to the new company. Palazzi noted, however, that because the company used cryptocurrencies instead, “the procedure was different.”
The lawyer explained that the firm created new cryptocurrency wallets for the company and a partner of the company holding tokens on cryptocurrency exchanges Lemon Cash and Ripio. The firm used these wallets to carry out the capital transfer.
“The valuation of crypto assets is done in real time. The cryptocurrency market, unlike an exchange, never closes. So both platforms have helped provide a kind of ‘valuation certificates’ for cryptocurrencies at the time of transfer.”
The lawyer stressed that this was a key step. Argentina’s General Company Law (LGS) requires an accurate calculation of the value of all assets in capital-related transactions.
A complicated process: using cryptocurrency as capital
Allende and Brea also had to enlist the help of an accountant and notary to “certify the value of the cryptocurrencies at the time of the transfer” and “verify the existence of the wallet and transfers.”
Palazzi praised IGJ for being “up to date with current technological developments.” The lawyer said that the authority’s “innovative regulations” have made it a “pioneer” in “Latin America and the rest of the world.”
Lemon’s legal manager Delfina Hermansson said the approval of the IGJ “represents a significant update to Argentine corporate law.” Earlier this month, the report stated that Argentine citizens are increasingly turning to stablecoins such as USDC and USDT.
Industry experts say many citizens are “hoarding” USD-linked coins rather than exchanging them for BTC.
