Where I work the solution was to use a proxy to pypi. Basically an internal pip repo (and docker, npm, maven, everything else...). All internal apps go through the internal repository that creates a local version of the package from pypi. That gives the security / compliance folks a way to block packages with security issues, etc. and at the same time provide the developers flexibility to get most of what is needed.

In a large company this gives the compliance folks a central place to blacklist packages - along with a trail of what systems have downloaded the package to target for upgrades.