- Legal action was initiated against Block Inc. in 2022 by the CFPB.
- The company has opted to put less emphasis on expanding internationally.
Jack Dorsey has chosen to halt support for the Bitcoin-friendly Cash App in the UK after six years of existence. Cash App, a consumer payments platform that facilitates funds transfers via mobile app, will leave the UK market on September 15.
The decision is a result of the difficulties Cash App has encountered with regulators. In 2013, the platform was activated by Block Inc., which was controlled by Jack Dorsey. It finally made it to the UK five years after its debut. A first for Cash App, the UK became its first overseas market.
Regulatory Hurdles
Regulators, however, started to throw a wrench into the financial framework. Legal action was initiated against Block Inc. in 2022 by the Consumer Financial Protection Bureau (CFPB). Due to an examination into how Cash App dealt with customer complaints and disputes, this had to happen.
According to the CFPB, it requested documents and data from Block’s attorney many times. However, the business still did not provide the requested papers in response to six of the CFPB’s particular inquiries.
According to NBC’s reporting from February, US financial officials were looking into the consumer payments network once again. This followed allegations by anonymous sources that Cash App had not adequately checked its users’ backgrounds.
Shares of Block fell sharply and the company had additional operating difficulties as a result of this bad news. The company has opted to put less emphasis on expanding internationally, particularly in the United Kingdom, and more on concentrating on the United States.
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