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Argentine government suspends blockchain platform and re-creates companies on paper

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"Now we are going to return to a 19th century system, completely backward and open to any tampering." The phrase is from Alejandro Ramírez, director of the Argentine Entrepreneurs Association (ASEA) defending blockchain technology.

According to the newspaper La nacion, this was his response to a government determination to suspend the current blockchain system for opening small and medium-sized businesses.

The system has worked since 2017 when it was implemented in the government of Mauricio Macri. The action provided for generating new companies in 24 hours so that they could streamline their activities and thus generate jobs.

The opening of companies in that period took about 60 days, according to a newspaper publication at the time.

The decision was confirmed to La Nacion by the head of the General Inspection of Justice (IGJ), Ricardo Nissen. The agency ordered the temporary suspension of the blockchain platform ‘Simplified Stock Companies’ (SAS) for 180 days. Now the opening of companies will be done again on paper.

"It is a decision that delays and hinders the work of Argentine businessmen," added Ramírez.

Argentina wants to reorganize

According to the newspaper, the resolution will be published in the Official Gazette in the coming days. A government spokesman said the intention is to reorganize the registration of these companies so that the IGJ has control.

"This goes against the rules that regulate other types of societies, because in this case, if the digital files disappear, there will not be a physical record", argued Nissen.

According to the director, SAS cannot currently be controlled, which puts them in a situation of inequality in relation to other types of societies.

The objective, according to him, is that there is a documentary inscription so that third parties can control their protocol. He also said that he does not rule out the continuity of the resolution or the return of the online service after the stipulated period.

Control over companies

The resolution will also temporarily suspend the possibility of digitally processing any change in companies.

That goes for changes in head office, capital, or any other transformation or designation, the newspaper said.

“Argentina is the only country in the world that moves from a digital system to a paper format. This fact not only threatens corporate transparency, but triples the costs of creating a company, ”added the head of ASEA.

Still according to the newspaper, at least 20 thousand companies were created through the blockchain platform, which would have generated approximately 47 thousand new jobs.


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