Burr & Forman’s Gonzalo Gandara, who helped form and register the first company in Argentina to use cryptocurrency as capital, co-authored a recent article marking the one-year anniversary of the milestone. The formation was made possible by a shift in how the General Inspectorate of Justice (IGJ) interpreted existing corporate law, ultimately recognizing that there were no legal barriers to accepting virtual assets as in-kind capital contributions.

The article explains that while Argentina’s General Companies Law did not prohibit the use of cryptocurrencies, the IGJ had previously declined to register companies using them for capital contributions. That changed when new leadership at the IGJ evaluated the issue through a more technical and forward-looking lens, allowing the registration to proceed and setting a precedent for future formations involving virtual assets.

The authors also highlight the impact of broader regulatory developments, including the creation of the Registry of Virtual Asset Service Providers by Argentina’s National Securities Commission in 2024. These efforts have contributed to increased legal clarity and helped align corporate law with emerging technologies and business practices.

While celebrating this progress, Gonzalo and fellow authors emphasize that the path forward lies not in overhauling corporate legislation, but in updating how it is interpreted and applied. They advocate for greater coordination among regulatory bodies to ensure consistency, reduce bureaucratic delays, and support a more dynamic and accessible business environment.

To read the full article, click here.