In a statement issued on June 15, the Uruguayan unicorn dLocal announced that its representatives maintained a “constructive meeting” with authorities of the Argentine federal government to address, among other matters, the way in which dLocal operates in the country, including the dLocal’s compliance with foreign exchange regulations.
The statement accessed by El Observador states that the government representatives “understood the importance of the services that dLocal provides in Argentina, the way in which it promotes financial inclusion in the country, and appreciated dLocal’s proactive commitment and willingness to cooperate with the applicable administrative and judicial authorities of Argentina”.
In this sense, the company recognized the intention of showing “an additional economic substance” that comes from the plan to hire approximately 100 people over the next year and 300 people in the medium term in the country.
Furthermore, in the statement, dLocal expresses its intention to make an aggregate investment at that time of up to US$100 million in Argentina. By the way, the statement adds that this investment may even be linked to “dollar-linked bonds issued locally by the Argentine federal government that can be used locally to meet operating expenses and local investments in accordance with the company’s strategy.” .
In the same sense, the company bets that these demonstrations constitute “one more proof of the fact that dLocal is in the country for the long term.”
The Argentine government’s complaint
In the first days of the month of June lArgentine Justice charged the Uruguayan “unicorn” dLocal for possible money laundering maneuvers, reported Infobae and confirmed El Observador.
The company that provides cross-border payments connecting Big Tech with emerging markets was being investigated by the government of Alberto Fernández for carrying out overbilling operations for digital services and currency smuggling for at least US$400 million.
After hearing the accusation, dLocal issued a statementi to its investors that was accessed by El Observador in which the firm reports that it received the notification from the Argentine government on June 1st and reaffirms its intention to “respond to any and all requests for information from regulatory authorities to demonstrate that you have acted in accordance with applicable regulations”.
change of authorities
Days later, one of the founders of the Uruguayan unicorn, Sergio Fogel, announced that he would once again assume an executive role in the company and he became co-president and director of Strategy of the Uruguayan unicorn.
“I am delighted to assume this executive role to continue supporting a dynamic and growth-focused leadership team as we guide the dLocal business through the next phase of growth,” the founder and co-chairman said in the statement.
“The development of dLocal since its founding shows the dedication and exceptional efforts of all our teams. I am confident that the future is bright with us leading it,” added Fogel.
