Dapper Labs Restricts Russian-based NFT Accounts, Abides by EU Sanctions
Nicholas Otieno Oct 10, 2022 03:15
Dapper Labs said it is complying with new sanctions approved by EU member states amid Russia’s continued escalating conflicts in Ukraine.
Dapper Labs – a company behind NFTs like CryptoKitties, NBA Top Shot, NFL All Day, UFC Strike, and the Flow blockchain – has confirmed it is cutting off payment services for non-fungible owners with links to Russia – said the move is due to new EU sanctions on Russia.
The NFT company said it is blocking Russian accounts from being able to purchase, sell or gift NFTs, as well as make other NFT purchases or withdrawals from the platform. Dapper stated: "It is now prohibited to provide crypto-asset wallet, account or custody services of any value to accounts with connections to Russia."
Dapper explained that the sanctions prohibit companies from providing crypto wallet and custody services to accounts associated with Russian users. The company said its business service offering is based in the EU, which has ordered it to comply with the sanctions.
The Vancouver-based firm said while affected users cannot move funds, gift tokens, sell NFTs or purchase new ones, they still own their assets on the platform and can continue viewing them.
The announcement comes after several crypto users raised complaints that they could not access their accounts and even showed email communication from Dapper Labs about the restrictions.
Last Thursday, the European Union introduced another wave of sanctions against Russia due to the prolonged invasion of Ukraine. The new sanctions enforced a complete ban on cross-border crypto payments between Russians and the EU. The ban prohibits all crypto-asset wallets, accounts, or custody services, regardless of the amount of funds in the wallet.
The EU introduced the new sanctions in response to Russia's continued escalation of conflicts in Ukraine. Following Russia's invasion of Ukraine on February 24, the EU has continued evolving packages of sanctions on Russia in a bid to close potential loopholes which could allow Russians to move funds abroad.
The latest sanctions come shortly after Russian officials approved cryptocurrency usage for cross-border payments. Late month, Russia's Central Bank of Russia and the Ministry of Finance approved crypto payments for cross-border use. This way will help the country evade the multiple financial sanctions that have been levied against it.
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