Among the violations identified by NYDFS in BLOCK, insufficient customer check, the absence of adequate AML systems, as well as conducting illegal activities related to fiat currency on the Cash App platform.
The regulator noted that the weak control measures have made Block services vulnerable to use for criminal purposes, including anonymous transactions with bitcoins that are difficult to track.
“Blocks careless attitude to highly risked cryptocurrency operations allowed anonymous transactions in massive transactions without proper user verification,” the regulator said.
In addition to paying a fine, Blocks obliged to appoint an independent specialist to track the processes of compliance with regulatory requirements.
Earlier, the founder of Block Jack Dorsey said that the company plans to invest in the development of equipment for mining and its own cryptocurrency.
Source: Bits
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