Canadian company Dapper Labs has blocked non-fungible token (NFT) transactions for Russian accounts. The move follows a new round of sanctions recently imposed by the EU, which prohibit the provision of crypto-currency-related services to Russian residents and entities.
NFT platform Dapper Labs complies with latest EU restrictions against the Russian Federation
Dapper Labs, the creators of the Flow blockchain network and projects such as Cryptokitties and NBA Top Shot has complied with new restrictive measures adopted by the European Union in response to Russia’s military intervention in Ukraine.
The EU’s eighth sanctions package was approved by Brussels on Thursday, October 6, after the latest escalation in the conflict, with Russia announcing partial mobilization and taking steps to annex four Ukrainian regions through what the bloc considers to be bogus referendums.
The sanctions, which target the Russian economy, government and foreign trade, also include financial measures affecting the business activities of crypto companies. The latter have been banned from providing any wallet, account or custody services to Russian nationals.
The restrictions apply regardless of the amount of digital assets, toughening the regime from the fifth round of sanctions imposed earlier this year, when only crypto asset services “of high value” were prohibited, those concerning crypto holdings exceeding €10,000 ($11,000 at the time).
Russian users will be able to keep NFTs purchased before the ban and have access to their accounts.
“Our payment processing and stored value services partner is subject to EU regulations and has asked us to act on all accounts held by those affected by the October 6 restrictions in accordance with EU law“, Dapper Labs explained in a notice posted on its website.
As a result, Dapper has had to suspend accounts with ties to Russia from buying, selling or donating any time in all Dapper sports, withdrawing from Dapper accounts and purchasing Dapper balances.
The NFT platform clarifies, however, that the accounts have not been closed. Affected users will be able to access them and view their tokens. They will also retain any previously purchased NFTs. “All Moments you own and all Dapper scales continue to be your property“, Dapper assured while apologizing for any inconvenience.
Other crypto-currency companies with a presence in Europe are likely to adopt similar measures, but the restrictions may not affect all global platforms. For example, Binance has reportedly informed users in Russia that it has not introduced any new restrictions, according to Russian crypto media. This is despite the fact that the world’s largest crypto exchange has complied with the previous round of European crypto sanctions.