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In a historic first for Argentina, a law firm has announced that a regulatory body has permitted it to register a company with capital that includes both Bitcoin (BTC) and USD Coin (USDC).
According to the media outlet Infobae, one of the partners contributed USDC 195 and BTC 0.00457621 (slightly over $303) as “initial capital.”
This arrangement was ultimately approved by the General Inspection of Justice (IGJ), the authority responsible for overseeing company registrations in Argentina.
Argentina National First for BTC, USDC-holding Firm
Although the amount is relatively modest, it signifies a legal advancement for law firms and cryptocurrency holders in Argentina.
Pablo Palazzi, a partner at the law firm Allende and Brea, detailed how the agreement was reached.
Palazzi noted that when companies utilize non-cash assets like land or real estate as capital, they must conduct accounting assessments to validate the worth of these assets.
Attorneys then assist in transferring ownership of these assets to the new entity. However, Palazzi remarked that since the firm opted for cryptocurrency, “the procedure was different.”
The attorney explained that the company established new crypto wallets for itself and the firm’s token-holding partner on the Lemon Cash and Ripio crypto exchanges. These wallets were utilized for the capital transfer. Palazzi stated:
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“The valuation of crypto assets occurs in real-time. The crypto market, unlike the stock market, is always open. Thus, both platforms provided a sort of ‘valuation certificates’ for the crypto assets at the time of the transfers.”
The attorney emphasized that this was a crucial step. Argentina’s General Law of Companies (LGS) mandates that all asset values must be accurately assessed in capital-related transactions.
Complicated Process: Using Crypto as Capital
Allende and Brea also needed to engage an accountant and a notary to “certify the value of the cryptocurrencies at the time of the transfer,” and to “verify the existence of the wallet and the transfers.”
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Palazzi commended the IGJ for remaining “current with technological advancements.” The attorney remarked that the body’s “innovative regulations” positioned it as a “pioneer” in “Latin America and beyond.”
Lemon’s Legal Manager Delfina Hermansson stated that the IGJ’s endorsement “marks a significant evolution in Argentinian corporate law.”
Earlier this month, a report indicated that Argentine citizens are increasingly adopting stablecoins like USDC and USDT.
Many citizens, according to industry insiders, are now “hoarding” USD-pegged coins rather than exchanging them for BTC.
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