In this context, one of the weaknesses pointed out by the allegations is that the payment processing company tried to circumvent the strict regulatory scrutiny by relying on Maltese regulators.
Facing this, dLocal seeks to obtain a full license from the party Financial Conduct Authority (FCA)UK’s financial regulator, and has submitted an application, he said Sebastian KanovichThe CEO of a Uruguayan company, to his investors by telephone accessible to the agency Reuters. Although it has not been disclosed at what stage the application – which can take up to 12 months -, or which corporate entities will fall under UK jurisdiction.
Why non-defense
Beyond dLocal’s first statement after the Muddy Waters Capital report became known — in which the Uruguayan company denied the allegations and asked investors not to get carried away by what they perceived to be business strategy by a British company—; From private conversations and several mentions in economic forums, Uruguay’s first unicorn is not out to defend its operations tooth and nail.
consulted by Goldman Sachs In this regard, particularly why he did not issue a written refutation of the alleged use of client funds, Kanovich replied that he had been advised not to participate in a “tit for tat”.
Meanwhile, from Muddy Waters they found the brief account of the multi-million dollar deficit in the operator’s accounts “so absurd that we literally laughed out loud”, they told Reuters.
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