Dapper Labs blocks Russian access to the blockchain

Rising political tension between Russia and the European Union (EU) has disrupted the country’s access to international services, such as Dapper Labs’ platform.

In an article published recently, Flow blockchain developer Dapper Labs announced an immediate suspension of Russian accounts following the EU’s new sanctions against Russia.

Under the new measure, Russian users are limited to connecting their wallets, current accounts and custody services.

Dapper Labs gets serious with Russia

Dapper Labs, the well-known Canada-based name behind popular NFT projects CryptoKitties, NBA Top Shot and blockchain Flow, has closed Russian accounts to comply with the EU.

It will not be possible for Russian users to buy or sell digital collectibles on multiple platforms. Their funds are also frozen.

To know,

“It is now prohibited to provide crypto-asset wallet, account or custody services of any value to accounts with connections to Russia, regardless of the size of the wallet.”

According to Dapper Labs, the ban applies not only to people with Russian passports, but also to people suspected of having connections to Russia. The platform noted that because its headquarters are located in the EU, it is required to follow the sanctions in a strict manner.

However, the platform said it did not close the accounts permanently.

Users whose NFTs have been affected by these measures can continue to access and view their collectibles. In addition, regardless of this new law, any NFTs that have been purchased previously by an affected user will continue to belong to that user.

Dapper Labs is launching a new NFT Marketplace in collaboration with Spain’s top soccer league La LIGA by the end of October. The platform will allow users to buy and sell NFTs consisting of videos featuring La Liga players and teams, as well as key moments in the league’s history.

Crypto transactions banned in Russia

The EU has officially confirmed a ban on both incoming and outgoing transfers from Russian cryptocurrency wallets, accounts and custodian providers following the proposed restrictions last week.

The latest move came after Moscow signed documents to annex 4 new regions of Ukraine, including Donetsk, Kherson, Lugansk and Zaporizhzhia.

Russian organizations, individuals and governments will not be able to offer or trade in services, including information technology consultancy, legal advice, code structure and technical services. Russian users could not transfer funds, including cryptocurrencies, to or from the EU.

Despite Russia’s historical stance against the use of bitcoin and other cryptocurrencies, the country is considering the possibility of using crypto in certain circumstances. Moscow would have authorized the use of crypto in cross-border trade through the Ministry of Finance.

While generally opening up to accepting cross-border cryptocurrency settlements, the Ministry of Finance and the Russian Central Bank are working together on the launch of the digital ruble.

The tough move by Dapper Labs, along with the Tornado Cash case, seemingly demonstrates the fact that mainstream adoption could not rule out centralization. Debates are inevitable shortly after the announcement.

Dapper received harsh criticism for his new move. Some individuals in the crypto community raised the question of censorship resistance. One Twitter account claimed that freezing accounts meant active censorship by the industry created to resist censorship.

EIDumboTS, which claims to be a Dapper employee, said in response that the toughened law left the firm with no choice and it had to take action to comply with the sanctions.

EIDumboTS commented,

“We are working quickly to understand the full implications of these sanctions on our community. And of course, we have sent communications to all affected Dapper wallet holders and our wider Dapper community as well.”

Sanctions imposed on Russia will definitely continue as long as the war continues. The EU and other parties must do everything to make Russia feel the economic costs of its military decisions.