Dapper Labs, Flow blockchain developers, has halted Russian investment accounts. That came after the EU (European Union) executed new sanctions against Russians and the country. Revealed on 6 October, the recent EU sanctions emphasize a complete suspension of crypto wallet provisions, custody and accounts services, despite the assets’ total value.
Dapper reacted to the sanctioned news by stating that accounts connected to Russia or Russians will no longer sell, buy or gift NFTs (non-fungible tokens), withdraw money from accounts, or fund their balances.
The firm confirmed that Dapper Labs had to restrict Russian accounts under the updated European Union law. It resorted to the move after its store value service and payment processing partner endured the new regulations.
Nevertheless, Dapper Labs is yet to close the accounts. Affected users can keep accessing and viewing their non-fungible tokens. Moreover, individuals that purchased the NFTs before the new rules will maintain ownership of the digital collectibles.
The Russian sanctions incorporate the suspension of global cryptocurrency payments between the EU and Russians. Also, it attracts the prohibition of cryptocurrency wallets, custody services, and accounts, despite the wallet balance.
Crypto Firms Suspending Cryptocurrency Services
As Dapper Labs follows the order to ban access to investors in Russia, it means another scenario where a cryptocurrency-related firm should endure regulatory pressure to prevent compliance problems, much like August’s Tornado Cash debacle.
Twitter user XBT200 criticized the move by Dapper, stating that the company is again the censorship-resilient tale of blockchain technology. Meanwhile, a Dapper employee @EIDumboTS said that the company faced pressure to take the move, and their tied hands forced the firm to ban Russian accounts.
Dapper Labs is a centralized company, with headquarters in Vancouver, Canada, with a $7.6 billion reported valuation. Besides the Flow platform, Dapper Labs introduced multiple NFT projects, including Crypto Kitties, NFL All Day, and NBA Top Shot.
The latest move means the EU has banned legal advisory and consultancy services to Russia alongside engineering and architectural services. Also, it targets Russia’s exports and imports, including petroleum and crude oil transport to other nations.