Argentina Registers First Cryptocurrency-Backed Company

The Ministry of Justice of Argentina has taken an important step in recognizing cryptocurrencies by officially registering the country’s first company that included crypto assets in its charter capital. This decision was approved by the General Inspection of Justice (IGJ) of Argentina, making this company the first crypto-capitalized firm not only in Argentina but in all of South America.

Registration Details

The company registration process required the creation of two cryptocurrency wallets through local digital asset exchanges Lemon Cash and Ripio. The company’s charter capital amounted to the equivalent of 470,625 Argentine pesos (about $500), which was represented by the following assets:

• 0.00457621 BTC (equivalent to $302.50)
• $194.99 in USDC stablecoins

Legal Aspects

A representative of the Allende & Brea law firm, which participated in the registration process, explained that creating a company with cryptocurrency charter capital implies special legal arrangements. In this case, partners provide a predetermined volume of digital assets to support the company’s activities and demonstrate their interest in the business.

This decision is especially significant in the context of the current economic situation in Argentina:

• The country has the highest level of cryptocurrency adoption in the Western Hemisphere
• Inflation in Argentina reaches about 300%
• According to Forbes, Argentine citizens do not trust cryptocurrency exchange services and prefer to store their digital assets themselves

Potential Consequences

The registration of the first company with cryptocurrency capital may have far-reaching consequences:

• It may set a precedent for other companies in Argentina and Latin America
• There may be increased integration of cryptocurrencies into the country’s traditional financial system
• It may lead to changes in legislation regulating the use of crypto assets in business

The decision of the Argentine Ministry of Justice marks an important step in recognizing and integrating cryptocurrencies into the country’s official economy. In conditions of high inflation and distrust of traditional financial institutions, this step may open new opportunities for business and investment in Argentina.