Blockchain-Based Gaming Firm Dapper Labs Drops Services To Russian Users
- Dapper Labs has suspended all its services for the accounts with connections to Russia, under the recent sanctions on Russia by the European Union.
- However, the firm would still allow all its users to access and view their non-fungible tokens (NFTs) despite the halt.
- EU imposed sanctions on Russia and its citizens which include export bans and the prohibition of all digital asset transactions between Russians and European wallet providers.
Roham Gharegozlou’s renowned blockchain-based gaming firm Dapper Labs has decided to suspend all its services for the accounts with connections to Russia, under the recent sanctions on Russia by the European Union.
Despite the halt of services to Russia-linked accounts, the firm would still allow all its users to access and view their non-fungible tokens (NFTs).
It is important to note that the European Union imposed the seventh round of sanctions against Russia for its actions toward Ukraine. The newly-imposed restrictions include export bans and the prohibition of all digital asset transactions between Russians and European wallet providers.
Regardless of the total value of assets, the EU absolutely banned the provision of crypto wallets, accounts, and custody services under the new restrictions.
In response, Dapper Labs hit Russia with similar restrictions, intensifying its commitment to regulatory compliance. The Canadian-based blockchain company banned Russia-based users from buying, selling, or gifting any of its “Moments,” or digital collectibles, across all Dapper Sports. Moreover, it has also halted withdrawals and balance purchases for such users.
“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 October 6 restrictions, consistent with EU law,”it said.
However, Dapper Labs decided not to deactivate the accounts because Russian users can still access their NFTs as their previously-purchased collectibles are still theirs.
The announcement reads:
“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.”
Interestingly, Dapper Labs stated that it closely watches the Russia-Ukraine conflict and the actions of international authorities. As a result, it might announce more restrictions down the road.
Heavy sanctions on Russia
This is not the first time Russia is facing heavy sanctions due to its aggressive strategy against Ukraine. Around a month ago, the United States Treasury Department imposed sanctions on Russia-based crypto accounts.
The US Treasury Department imposed sanctions on Bitcoin accounts with Russian addresses about a month ago. All five addresses belonged to Task Force Rusich, a paramilitary group that had committed atrocities against Ukrainian soldiers. The finance organization claims that these groups used digital assets to pay for their heinous acts.
Similar to the European Union, the US Treasury Department reiterated its commitment to continue supporting Ukraine’s military campaign.
The U.S. Treasury stated at the time:
“As Ukraine presses forward with defending its freedom, today we’re taking steps to further degrade Russia’s ability to rebuild its military, hold perpetrators of violence accountable, and further financially isolate Putin.”