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The Argentina government announced that it suspended the blockchain-based system to register new companies for 180 days, Cointelegraph reported.
Ricardo Nissen, the head of the General Inspectorate of Justice (IGJ), told local news outlet La Nación that the government seeks to reorder the registration of new companies so that IGJ can participate in the process. The suspension will begin in the second week of March.
While the blockchain system is suspended, the registration of the Companies for Simplified Shares also known as SAS in Spanish would be made in the Argentine Public Registry exclusively on paper. Using the online system, about 20,000 companies were registered since 2017. The digital mechanism allows companies to get through the process in 24 hours which is faster compared to the 55-day processing using the traditional way.
“There is no control. Macrismo thought that by enabling the constitution of companies in 24 hours we would have a lot of investments. It was crazy,” Nissin told El Cronista.
The government’s decision to suspend the blockchain system was criticized by the Association of Entrepreneurs of Argentina (ASEA), which considered the move a blow especially that more and more are already using blockchain technology.
“Until today, accounting books were kept digitally through the Blockchain system, which guarantees absolute transparency and inviolability in information management. Now, we will have to return to a 19th-century system, completely anachronistic and permeable to any adulteration,” ASEA said in a statement.
Meanwhile, last year, Argentina announced that it invested in local early-stage blockchain projects that receive funding from Binance Labs and Founder Labs, the country’s blockchain Accelerator. Binance Labs selected Buenos Aires as the Latin American hub for Season 2 of its Incubation Program which began in February 2019. Binance Labs and Founders Lab hosted a 10-week incubation program for blockchain startups in the city.
