Argentina registers its first company with capital fully in crypto assets, highlighting regulatory progress.
New IGJ resolution allows companies to accept capital in cryptocurrencies like Bitcoin and USDC.
Argentina’s crypto sector saw $85.4 billion in transactions last year amid heightened regulatory scrutiny.
Argentina has achieved a global first by registering the first-ever company with capital entirely in crypto assets! This milestone marks a significant moment for the South American nation and the crypto world at large.
The company, which has not been named, was officially registered by the General Inspectorate of Justice (IGJ) under the authority of the Argentine Ministry of Justice.
La Inspección General de Justicia aprobó la primera sociedad con capitales integrados en criptomonedas.Gracias a la modernización impulsada por este Ministerio, hicimos historia. Somos el primer país de América Latina en lograr este hito.
— Ministerio de Justicia (@MinJusticia_Ar) July 25, 2024
Law firm Allende & Brea facilitated the registration process, with a starting capital of nearly $500, comprising 0.00457621 Bitcoin (BTC) and $194.99 in USD Coin (USDC). The modern financial setup demonstrates the increasing acceptance of digital currencies in mainstream business operations.
This registration follows a recent resolution by the IGJ that outlines procedures for companies to accept social contributions in virtual assets. The decision to allow capital contributions in cryptocurrencies like BTC and USDC highlights Argentina’s expanding regulatory environment concerning digital financial activities.
Adam Dubove, a Bitcoin entrepreneur and activist, noted that while direct Bitcoin contributions are not possible, the use of exchanges for payment commitments is permissible.
Adding to this positive sentiment, Argentina has become a prominent center for cryptocurrency activities, recording an impressive $85.4 billion in transactions last year, according to a recent report by Coin Edition.
In response to the growing concern over crypto-related crimes, including money laundering, Argentina initiated several investigations earlier this year. These efforts resulted in widespread raids across more than 64 cryptocurrency firms in May and June of 2024. The operations led to numerous arrests at both the domestic and international levels, targeting illegal activities such as crime and money laundering.
The Argentine government has been active in adapting to the growing crypto appetite among its population by introducing a tax reduction program for crypto traders with assets up to $100,000. This initiative is part of a broader strategy to encourage compliance while reducing illicit activities, aiming to alleviate pressures from international regulatory bodies.
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