The Argentine government announced the suspension of the blockchain system for registering new companies on180 days. This is necessary to ensure greater involvement of regulators in the process.
As Ricardo Nissen stated,Head of the General Inspectorate of Justice (IGJ), the decision was made due to the need to change the procedure for registering new companies. During the suspension period, which will begin from the second week of March, the registration of companies in the Argentine public registry will be carried out exclusively on paper.
With the help of the blockchain system in the country,About 20,000 companies have been registered since its introduction in 2017 on behalf of then-President Mauricio Macri. Thanks to the accelerated mechanism for registering new companies, it was possible to complete the entire process within 24 hours, whereas with the traditional method it took 55 days.
“Complete lack of control. Politicians believed that by allowing companies to be created in 24 hours, we would get a boom in investment. It was crazy,” Nissen said in a statement.
The Argentinean Entrepreneurs Association (ASEA) reacted negatively to a government decision, which issued the following statement:
“Until today, data has been stored digitallyview on the blockchain, which guaranteed absolute transparency and integrity in the management of information. Now we have to return to the 19th century system, completely anachronistic and open to any falsification. ”
Alejandro Ramírez,ASEA's public policy officer said Argentina would thus be the only country in the world that is moving from a digital system back to a paper format in registering new companies.
Let us remember that last summer threeThe organizations have joined forces to deploy a blockchain-based digital identity system in the Argentine capital. In addition, in the spring of 2019, it became known that the country’s government intends to invest in blockchain startups of the Binance Labs incubator in the early stages of development.
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