Bitcoin is currently trading above $60,000. Recently, the team at Allende & Brea achieved a significant milestone by forming a company with part of its capital represented in cryptocurrencies, specifically BTC and USDC. This marks the first instance of its kind in Argentina and Latin America.
In detail, one of the partners contributed 0.00457621 bitcoins and 195 USDC (a stablecoin) to establish the initial capital. These digital currencies were transferred from the partner’s personal wallet (Lemon Cash) to the company’s wallet (Ripio), which was registered as “society in formation.”
Pablo Palazzi, a partner at Allende & Brea, explained that when contributing physical assets like land or property, an accounting assessment is necessary. However, with cryptocurrencies, the process was different. They opened two digital wallets—one personal with Lemon and one for the company with Ripio—and transferred the capital directly between them.
Palazzi highlighted that the valuation of cryptocurrencies is published in real time and does not close like stock prices do. During this process, they contacted both platforms and obtained “valuation certificates” for the cryptocurrencies at the time of contribution. He emphasized the importance of these assets being attachable, as required by the General Corporate Law.
To ensure transparency and legal compliance, they collaborated with an accountant and a notary. The accountant verified the value of the cryptocurrencies at the time of transfer using Ripio’s data, while the notary confirmed the existence of the account and the transfer itself.
The notarial record indicated that the company capital was set at ARS 550,000, represented by 55,000 shares. The partner contributed 49,100 shares while the other contributed 5,900 shares, thus fulfilling the capital requirement proportionate to their respective contributions. The cryptocurrency contribution included both the bitcoin and USDC.
As of the publication of this information, bitcoin was priced at $66,106, making the contribution worth approximately $302.50. The USDC was valued at $0.999976, meaning the 195 coins totaled about $194.99. Altogether, the partner’s digital currency contributions amounted to $497.49, which translates to roughly ARS 470,625 based on the official dollar rate.
Pablo Palazzi expressed optimism about the situation, praising the General Inspection of Justice (IGJ) for having advisors and leaders who are well-equipped to handle current technological developments. He noted that this innovative approach is pioneering in Latin America and beyond.
Delfina Hermansson, Legal Manager at Lemon, remarked that the acceptance of cryptocurrencies as a means to fulfill capital contributions reflects a substantial update to Argentine corporate law. According to specialists, allowing capital integration through cryptocurrencies may pave the way for more companies to be formed in this manner.
Hermansson emphasized that this measure not only promotes the cryptocurrency ecosystem but also creates a safe and trustworthy environment for investing and operating with digital assets. Following the implementation of Law 27.739, Virtual Asset Service Provider (VASP) registries play a key role in preventing money laundering, and the recent updates from IGJ solidify their importance in ensuring the integrity of corporate capital.
As a VASP registered with the National Securities Commission (CNV), Lemon acts as a validator for the IGJ, certifying the ownership and acquisition of the contributed virtual assets. This milestone sets a precedent in Argentina, demonstrating the necessity of clear regulations to allow for interoperability between the crypto ecosystem and the traditional financial system.
Image and News Source: https://www.infobae.com/economia/2024/07/24/la-inspeccion-general-de-justicia-aprobo-una-srl-cuyo-capital-fue-aportado-en-criptomonedas/
