South America's First! Argentina approves the establishment of the first Bitcoin company, with initial capital of about 500 ETH, poised to attract more businesses.

The Ministry of Justice in Argentina has approved the first company to be established with cryptocurrency capital, registered with Bitcoin (BTC) and the US Dollar stablecoin (USDC) as its capital. This development signifies a significant advancement in the adoption of cryptocurrencies within the Argentine business sector.

First in South America! Argentina Approves Registration of Company with Bitcoin Capital

The Argentine Ministry of Justice, through the General Inspection of Justice (IGJ), approved the registration of a company with crypto capital, submitted by the law firm Allende & Brea, with an initial capital of around $500. The Argentine Ministry of Justice stated that Argentina is the first country in Latin America to approve the registration of a company with cryptocurrency as capital, making history.

Specifically, the capital includes 0.00457621 BTC, valued at $302.5 based on the Bitcoin exchange rate on the day of registration, and $194.99 in USDC. In total, this cryptocurrency investment is valued at $497.49.

New Regulations for Virtual Assets in Argentina

This registration follows a recent resolution by the IGJ, which provides clear procedures for companies to receive virtual assets and cryptocurrency capital. The IGJ recognizes cryptocurrencies as tradable valuable digital certificates that can be used for payments or investments.

Process Requirements: Crypto Capital Purchased from Local Argentine Exchanges

The BTC and USDC capital used for company registration was transferred through wallets of the Argentine local exchanges Lemon Cash and Ripio. These platforms are regulated by the Argentine National Securities Commission (CNV).

Pablo Palazzi, a partner at Allende & Brea law firm, explained that funding company registration with Bitcoin and USD stablecoin differs from using physical assets like land or real estate. Therefore, two cryptocurrency wallets were set up: a personal wallet on Lemon and a company wallet on Ripio, before executing the transfer of BTC and USDC.

Verification Process

To verify the registration, accountants and notaries are involved. Accountants certify the value of BTC and USDC transactions based on Ripio's data, while notaries verify the existence of accounts and transfers.

Argentine Regulatory Requirement: Crypto Assets Must Be Seizable

Assets Subject to Seizure

Palazzi emphasizes that assets must be seizable, as required by the Company Law. Although Bitcoin is a digital asset that can be seized in situations beyond complete control, self-custody of Bitcoin can prevent national confiscation and seizure.

Restrictions and Solutions

Registering capital with Bitcoin and stablecoin in Argentina requires the involvement of cryptocurrency exchanges. Bitcoin entrepreneur and activist Adam Dubove points out that payment commitments from exchanges can be used to integrate a company's capital, rather than directly using Bitcoin.

Potential Impact on More Companies Adopting Cryptocurrency for Inflation Hedging

The registration of the first company in Argentina with Bitcoin and USDC capital represents an important step in the adoption of cryptocurrency in the country's legal and business sectors. This precedent may encourage more companies to consider using cryptocurrency as a viable option for initial capital and financial transactions, opening up new opportunities for the Argentine market and Latin America as a whole.