Blockchain-based gaming company Dapper Labs has stopped servicing all accounts with Russian connections, but they can still access and view their non-fungible tokens (NFTs).
The move comes as a result of the latest sanctions that the European Union imposed on Russia due to the ongoing military conflict with Ukraine.
“Consistent with EU law”
A few days ago, the European Union criticized Russia with its eighth package of sanctions for its aggression in Ukraine. They include numerous restrictions, including export bans and a ban on all cryptocurrency transactions between Russians and European wallet providers.
“Existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts or custody services, regardless of the amount of the wallet,” the European Commission stated.
Soon after, Canada-based blockchain company Dapper Labs hit the Russians with similar limitations. It suspended these users from selling, buying or giving away any of their digital collectibles (known as “Moments”) to all Dapper Sports. Withdrawals and balance purchases are also not available.
“Our payment processing partner and stored value service is subject to EU regulations and has instructed us to act on all accounts of those affected by the October 6 restrictions, in accordance with EU law EU”, explained the entity.
However, Dapper Labs did not terminate the accounts, as Russian customers can access their NFTs, while previously purchased collectibles still belong to them.
The company revealed that it is closely monitoring the war between Russia and Ukraine and the actions of global regulators. As such, it may announce additional restrictions in the future.
Russian war criminals and crypto
Almost a month ago, the US Treasury Department sanctioned cryptocurrency accounts based in Russia. The five addresses belonged to the neo-Nazi paramilitary group, Task Force Rusich, which had committed atrocities against soldiers in Ukraine. According to the financial organization, the miscreants financed their gruesome acts using digital assets.
The US Treasury Department promised to continue to aid Ukraine’s efforts in the military conflict and to weaken Russia’s forces in every possible way:
“As Ukraine moves forward in defending its freedom, today we are taking steps to further degrade Russia’s ability to rebuild its military, hold perpetrators of violence accountable, and further isolate Putin economically.”
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