Regulation
New Argentine regulation facilitates cryptocurrency as a legitimate contribution of businesses
- Buenos Aires presents General Resolution No. 15, allowing companies to receive social security contributions in cryptocurrencies.
- The regulation specifies that cryptocurrencies are digital assets, excluding fiat currencies, intended for capital contributions to companies.
Bitcoin and other cryptocurrencies have recently gained a new level of acceptance in business operations in Buenos Aires. The General Inspectorate of Justice (IGJ) of the City of Buenos Aires has published General Resolution No. 15, which outlines the 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 companies of a commercial nature, as is the case of the blockchain […] the possibility of integrating contributions into the constitution of the company is incorporated in the new regulations and in the capital increases thereof, made up of virtual assets and cryptocurrencies…”.
The resolution recognizes technological advances, including blockchain, that are increasingly integrated into businesses. It stipulates that companies under the jurisdiction of the IGJ can now accept cryptocurrencies as part of their initial capital and for capital increases, effectively using these digital assets for corporate financing.
Cryptocurrencies are defined in the resolution as:
“digital representations of value that can be exchanged 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. In particular, digital assets must be held with a Virtual Asset Service Provider (VASP) registered with the National Securities Commission (CNV) and based in Argentina. This regulation prohibits the use of foreign exchanges or self-managed wallets for such contributions.
In addition, the resolution requires detailed information on the type, quantity and assigned value of the contributed cryptocurrencies. It also requires that the contributing partner be the legitimate owner of these assets. In addition, the value of the contributed virtual assets must be verified by means of an accounting certification that estimates their market value at the time of the company’s creation.
Following the recent news In the Crypto News flash, on Argentina, this new regulatory framework provides clarity and legal support for companies to integrate cryptocurrencies into their financial structures. This should encourage more companies to adopt this mode of contribution, especially since many investors hold a significant portion of their capital in digital assets.
At Crypto News Flash we analyzed the regulations in Argentina Throughout the year, beyond providing a new avenue for corporate contributions, accepting cryptocurrencies can benefit businesses by reducing transaction costs, speeding up cross-border payments, and improving their competitive and innovative image.
This regulation marks a progressive step towards the integration of digital assets into Buenos Aires’ traditional financial system, setting a precedent for other regions to follow.
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