• Buenos Aires introduces Resolution General N° 15, allowing companies to receive social contributions in cryptocurrencies.
• Regulation specifies cryptocurrencies as digital assets, excluding fiat currencies, for corporate capital contributions.

In a recent crypto development in Argentina, Bitcoin and other cryptocurrencies have gained a new level of acceptance in business operations in Buenos Aires. The General Inspection of Justice (IGJ) of the City of Buenos Aires has issued Resolution General N° 15, which outlines procedures and requirements for companies to receive social contributions in cryptocurrencies and virtual assets.

“attentive to the development presented in our time by new technologies applied to the development of projects and ventures of a business nature, as is the case of blockchain […] the possibility of integrating contributions into the constitution of the company is incorporated into the new regulations and in the capital increases thereof, consisting of virtual assets and cryptocurrencies…”.

The resolution acknowledges the advancements in technology, particularly blockchain, which are increasingly being integrated into business ventures. It stipulates that companies under the IGJ’s jurisdiction can now accept cryptocurrencies as part of their initial capital and for capital increases, effectively using these digital assets for corporate funding.

Cryptocurrencies are defined in the resolution as:

“digital representations of value that can be traded or transferred digitally and used for payments or investments.” 

It explicitly states that virtual assets do not include fiat currencies.

For a company to accept cryptocurrencies as social contributions, certain conditions must be met. Notably, the digital assets must be held with a Virtual Asset Service Provider (VASP) that is registered with the National Securities Commission (CNV) and based in Argentina. This regulation prohibits the use of foreign exchanges or self-custody wallets for such contributions.

Further, the resolution requires detailed information about the type, quantity, and assigned value of the contributed cryptocurrencies. It also mandates that the contributing partner must be the legitimate owner of these assets. Additionally, the value of the contributed virtual assets must be verified through an accounting certification that estimates their market value at the time of the company’s formation.

Following the recent news in Crypto News flash, about Argentina, this new regulatory framework provides clarity and legal backing for businesses to incorporate cryptocurrencies into their financial structures. This expected to encourage more companies to adopt this method of contribution, particularly as many investors hold significant portions of their capital in digital assets.

At Crypto News Flash, we have analyzed regulations in Argentina throughout the year, therefore, beyond offering a new avenue for corporate contributions, accepting cryptocurrencies can benefit companies by reducing transactional costs, speeding up cross-border payments, and enhancing their competitive and innovative image. 

This regulation marks a progressive step towards integrating digital assets into the mainstream financial system of Buenos Aires, setting a precedent for other regions to follow.