Developments Regarding Warrants

On July 18, Decree 640/2024 was published in the Official Gazette, as a result of joint work between the Secretariat for the Coordination of Production of the Ministry of Economy (“Secretaría de Coordinación de la Producción del Ministerio de Económica”) and the Ministry of Deregulation and State Transformation (“Ministerio de Desregulación y Transformación de Estado”).

Through this Decree, the Argentine Government provided that “‘Warrants’ and ‘certificates of deposit’ issued by individuals or legal entities that choose not to register in the Registry of Warrants will have an identical legal treatment to those issued by registered companies”.

In this way, by equalizing the legal treatment received by those ‘Warrants’ issued by individuals or legal entities that have or have not chosen to register in the Warrant Registry, the Warrants can be freely issued.

Within the modifications, the Decree stated that the ‘Warrants’ may be issued and traded electronically on the issuer’s own platforms or those of a third party, which may be public or private.

As a novelty, the ‘Warrants’ will be allowed to be issued in any technological format that “complies with the characteristics of being nominative and providing indubitable identification of the signatory and that allows its negotiation, including centralized or distributed databases, cryptoassets, other forms of tokenization or any other technology that guarantees the security and ease of transactions”. This last measure represents an innovation and an advance in the application of distributed ledger technologies in the public sector, in a context in which the diffusion of digital assets and their underlying technologies are increasing.