The law firm claims that a regulator permitted it to register a firm whose capital is partially comprised of Bitcoin (BTC) and USD Coin (USDC) in Argentina, a national first.
One of the firm’s associates contributed USDC 195 and BTC 0.00457621 (approximately $303) as “initial capital,” according to the media outlet Infobae.
The General Inspection of Justice (IGJ), which regulates company registration in Argentina, ultimately approved the transaction.
Although the total is comparatively low, it nonetheless signifies a legal milestone for crypto holders and law firms in Argentina.
Pablo Palazzi, a partner at the law firm Allende and Brea, provided an explanation of the process by which the agreement was finalized.
Palazzi stated that firms must utilize accounting studies to justify the value of non-cash assets, such as land or real estate, when they employ them as capital.
Lawyers then assist in the transfer of ownership of these assets to the new company. Nevertheless, Palazzi observed that the procedure was distinct because the firm employed cryptocurrency instead.
The counsel clarified that the company and its token-holding associate established new crypto wallets on the Lemon Cash and Ripio crypto exchanges. Utilizing these purses, the law firm executed a capital transfer. Palazzi stated:
“The valuation of crypto assets occurs in real time. The crypto market is incapable of closing, in contrast to the stock exchange. Therefore, both platforms contributed to the provision of “valuation certificates” for the cryptoassets during the transfer process.”
The counsel emphasized that this was a critical step. In capital-related transactions, Argentina’s General Law of Companies (LGS) mandates that all assets’ values be precisely determined.
A notary public and certified public accountant were also needed by Allende and Brea to “confirm the worth of the cryptocurrency at the moment of the transfer,” and to “check the existence of the wallet and the transactions.”
Palazzi commended the IGJ for its commitment to remaining “current with the latest technological advancements.” The counsel asserted that the organization was a “pioneer” in “Latin America and the rest of the world” due to its “innovative regulations.”
Delfina Hermansson, Lemon’s Legal Manager, stated that the IGJ’s approval “represents a significant reform of Argentinian corporate law.”
A report from earlier this month stated that Argentine citizens are progressively utilizing stablecoins such as USDC and USDT.
Rather than trading USD-pegged coins for BTC, a significant number of citizens are allegedly “hoarding” them, according to industry insiders.
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