Dapper Labs, a leading blockchain company, has terminated payment services for holders of non-fungible tokens with ties to Russia, citing EU sanctions in a blog post.
- According to the firm’s announcement, users subject to the penalties will retain ownership of their NFTs and monies, however, they will not be able to transfer or utilize them in any way. Any NFT that an affected user previously bought still belongs to that user, despite the new regulation.
- This decision has gotten a mixed response from the cryptocurrency community. Some members said that the issue was entirely outside the firm’s control. In contrast, others claimed these restrictions were against cryptocurrencies’ decentralization and censorship-resistant features.
See Related: Russian Government To Legalize Crypto For Cross-Border Payments
EU Sanctions Against Russia
- The EU sanctions constitute a step forward from earlier limitations on cryptocurrencies in April. The supply of crypto-asset wallets, accounts, and custody services is prohibited under the most recent round of EU sanctions on Russia, announced on October 6. This prohibition applies regardless of the overall value of the assets.
- According to a press release from the EU, current restrictions on bitcoin assets have been enhanced by prohibiting services regardless of the value of a wallet. This was previously restricted to €10,000.
- The harsher penalties are meant as retaliation for “Russia’s continuous escalation and unlawful war against Ukraine.” This includes the mobilization of more soldiers and the blatant use of nuclear threats.
- The penalties which target the Russian government, economy, and international target, include financial sanctions against banning the operations of crypto firms in Russia.
See Related: Bitcoin Overtakes The Russian Ruble In Value
