Argentina National First for BTC, USDC-holding Firm

In an unprecedented legal development, a law firm in Argentina has successfully registered a company whose initial capital includes Bitcoin (BTC) and USD Coin (USDC).

According to the media outlet Infobae, one of the firm's partners contributed USDC 195 and BTC 0.00457621, amounting to just over $303.

The General Inspection of Justice (IGJ), the regulatory body responsible for company registration in Argentina, approved the deal. While the sum may seem relatively modest, it represents a significant legal breakthrough for law firms and cryptocurrency holders in the country.

The Legal Process

Pablo Palazzi, a partner at Allende and Brea's law firm, explained how the deal was finalized. He said that when firms use non-cash assets like land or real estate as capital, they need to employ accounting studies to determine their value. Lawyers then facilitate the transfer of ownership to the new company.

However, since the firm used cryptocurrency instead, the procedure was different. The company created new crypto wallets for the firm and its token-holding partner on the Lemon Cash and Ripio crypto exchanges. These wallets were used to conduct the capital transfer. Palazzi elaborated:

"The valuation of crypto assets happens in real time. The crypto market, unlike the stock exchange, never closes. Both platforms helped provide a kind of 'valuation certificate' for the crypto assets at the time of the transfers.

Complicated Process: Using Crypto as Capital

Allende and Brea also enlisted the help of an accountant and a notary to certify the cryptocurrencies' value at the time of the transfer and verify the existence of the wallet and the transfers.

Palazzi praised the IGJ for staying up to date with current technological developments. He said the body's innovative regulations made it a pioneer in Latin America and the rest of the world.

Industry Reactions

Lemon's Legal Manager Delfina Hermansson stated that the IGJ's approval represents a significant update to Argentinian corporate law.

Earlier this month, a report claimed that Argentine citizens are increasingly turning to stablecoins like USDC and USDT. Industry insiders claim many citizens are now hoarding USD-pegged coins instead of trading them for BTC.

This groundbreaking move by the IGJ could set a precedent for future company registrations involving cryptocurrency, paving the way for more innovative legal frameworks in Argentina and beyond.