The blockchain-based gaming company – Dapper Labs – stopped servicing all accounts with connections to Russia, but they are still able to 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.
A few days ago, the European Union slammed Russia with its eighth package of sanctions for its aggression against Ukraine. They include numerous restrictions, including export bans and outlawing all cryptocurrency transactions between Russians and European wallet providers.
“The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet,” the European Commission stated.
Shortly after, the Canadian-based blockchain company – Dapper Labs – hit Russians with similar constraints. It suspended those users from selling, buying, or gifting any of its digital collectibles (known as “Moments”) across all Dapper Sports. Withdrawals and balance purchases are also unavailable.
“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,” the entity explained.
Nonetheless, 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 it closely monitors the Russia-Ukraine war and the actions of global regulators. As such, it might announce additional restrictions in the future.
Nearly a month ago, the United States Treasury Department sanctioned Russian-based cryptocurrency accounts. All five addresses belonged to the neo-Nazi paramilitary group – Task Force Rusich – which had committed atrocities against soldiers in Ukraine. According to the finance organization, the wrongdoers funded their gruesome acts via digital assets.
The US Treasury Department vowed to keep aiding Ukraine’s efforts in the military conflict and weaken Russia’s forces in every way possible:
“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.”