Crypto News: Dapper Labs Suspends Russian Accounts After EU New Sanctions

Dapper Labs, a Flow Blockchain developers has suspended Russian accounts after the European Union (EU) imposed new sanctions against Russia and its nationals.

iexclusivenews reports that the latest round of EU measures on Russia, announced on October 6. Includes a complete ban on the provision of crypto-asset wallets, accounts, and custody services, regardless of the overall value of the assets.

This online news outlet understands that following the introduction of the sanctions. Dapper indicated that accounts with Russian connections will no longer be able to trade, buy, or give nonfungible tokens (NFTs). Withdraw funds, or add to their balances, stating:

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

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Dapper has been directed to implement the limits on these accounts under EU legislation since its “payment processing and stored value service partner is subject to EU rules,” according to the firm.

“However, 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,” the firm stated.

The sanctions on Russia include a complete ban on cross-border crypto payments between Russians and the EU. Which also results in the prohibition of “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.”

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Dapper’s decision to deny access to Russians is another example of a crypto-related company succumbing to governmental pressure.

In order to avoid compliance concerns, similar to the Tornado Cash crypto mixer disaster in August.

On Twitter, user @XBT002 criticized Dapper over the move, as they argued that it works against the censorship-resistant notion of blockchain tech:

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“If you’re freezing ‘accounts,’ you’re actively censoring in an industry that was founded around censorship resistance.”

In response, @EIDumboTS, who claims to be a Dapper employee, reiterated that the firm was “directed” to take this action on the Russian accounts and therefore had its hands tied in this situation.

Dapper is a centralized firm with a stated valuation of $7.6 billion headquartered in Vancouver, Canada.

However, iexclusivenews Nigeria reports that Dapper has developed a slew of successful NFT projects alongside the Flow blockchain. Including NBA Top Shot, NFL All Day, and Crypto Kitties. The company is getting ready to launch.