Dapper Labs Suspends Russian Accounts Amid EU Sanctions

After the European Union imposed more restrictions against Russia and its citizens, flow blockchain developer Dapper Labs suspended Russian accounts.

The most recent round of EU sanctions on Russia was announced on October 6. They completely forbid the supply of cryptocurrency wallets, accounts, and custody services, regardless of the overall amount of the assets.

However, Dapper is a centralized company with its headquarters in Vancouver, Canada, with a stated worth of $7.6 billion. NBA Top Shot, NFL All Day, and Crypto Kitties are some of the well-known NFT applications that Dapper has launched with the Flow blockchain.

The company announced that accounts with connections to Russia would no longer be able to sell, buy, or give nonfungible tokens (NFTs), withdraw money from their accounts, or increase their balances in response to the disclosure of the sanctions. 

The company stated that because its payment processing and stored value service partner is subject to EU standards, Dapper has been mandated by EU legislation to apply the limits on these accounts.

The sanctions put in place against Russia prevent “any crypto-asset wallets, accounts, or custodial services, regardless of the volume of the wallet,” in addition to prohibiting “any cross-border cryptocurrency transfers between Russians and EU residents.”

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The company also said:

“Dapper has not closed the accounts. Users impacted by these actions can continue to access and view their NFTs. Additionally, regardless of this new regulation, any NFT previously purchased by an impacted user continues to belong to that user. Any Moments you own and any Dapper Balance continue to be your property.”

The company has cooperated with directives to ban access to Russians, similar to the Tornado Cash crypto mixer snafu in August. It is just another occasion in which a crypto-related company has had to yield to government pressure to allay compliance worries.

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