In a significant move to ensure compliance and oversight in the cryptocurrency sector, New York State's Department of Financial Services (DFS) has fined Block Inc. $40 million and mandated independent oversight following major compliance failures in Cash App's bitcoin and fiat transaction monitoring.

The DFS revealed that Block Inc., the parent company of Cash App, failed to adequately monitor and prevent suspicious transactions, as well as comply with anti-money laundering (AML) regulations. These shortcomings were identified as serious red flags that raised concerns about the company's ability to effectively combat financial crimes within its platform.

As a response to these critical lapses in compliance, the DFS has imposed a hefty fine on Block Inc. and required the company to implement independent oversight to address and rectify the issues.

Source: https://news.bitcoin.com/block-fined-40m-over-cash-apps-crypto-compliance-failures-and-169k-ignored-alerts/