Dapper Labs Suspends Russian Accounts After New EU Sanctions
Canadian
company Dapper Labs has blocked operations with non-fungible tokens (NFTs) for
Russian accounts. The move follows a new round of sanctions recently imposed by
the EU which prohibit the provision of crypto-related services to Russian
residents and entities.
NFT Platform Dapper Labs Conforms to the Latest EU Restrictions
Dapper
Labs, the creators of the Flow blockchain network and projects like Cryptokitties and NBA
Top Shot, has complied with the new sanction measures adopted by the European Union in response to Russia’s
military intervention in Ukraine.
The
eighth package of EU sanctions was approved by Brussels on Thursday, Oct. 6, after the
latest escalation of the conflict, with Russia announcing partial mobilization
and taking steps to annex four Ukrainian regions through what the bloc sees as
fake referendums.
The
penalties, targeting the Russian economy, government, and foreign trade, also
feature financial measures affecting the business activities of crypto
companies. Crypto companies have been prohibited from providing any wallet,
account, or custody services to Russian nationals.
The
restrictions apply regardless of the number of digital assets, tightening the
regime in comparison with the fifth round of sanctions imposed earlier this
year, when only "high-value" crypto-asset services were banned, those
for crypto holdings exceeding €10,000 ($11,000 at the time).
Russian Users to Keep NFTs Bought Before Ban
"Our
payment processing and stored value service partner is subject to EU
regulations and has directed us to take action on all accounts held by those
impacted by the Oct. 6 restrictions, consistent with EU law," Dapper Labs
explained in a notice published on its website.
As
a result, the company said, Dapper has had to suspend accounts with connections
to Russia from the purchase, sale, or gifting of any Moment across
all Dapper Sports, any withdrawals from Dapper accounts, and Dapper balance
purchases.
The
NFT platform pointed out, however, that the accounts were not closed. Impacted
users will be able to access them and view their tokens. They will also keep
any previously purchased NFTs. "Any moments you own and any Dapper Balance
continue to be your property," Dapper assured while apologizing for any
inconvenience.
Other
crypto companies with a presence in Europe are likely to adopt similar
measures, but the restrictions may not affect all global platforms. For
example, Binance has reportedly informed users in Russia that it did not
introduce new restrictions, according to Russian crypto media. That’s despite
the world’s largest crypto exchange complying with the previous round of
European crypto sanctions.
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