Dapper Labs Confirms It Is Suspending Russian Accounts

UTC by Ibukun Ogundare · 3 min read
Dapper Labs Confirms It Is Suspending Russian Accounts
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The EU keeps taking strict measures against Russia after the Ukraine invasion.

Due to the most recent EU sanctions that just came into force, Dapper Labs is restricting Russian accounts from accessing its services. The non-fungible token (NFT) company confirmed the restriction after the news made rounds on Twitter (NYSE: TWTR). A Twitter user posted a copy of a Dapper Labs letter issuing warnings to users with Russian ties. The company warned that it has frozen funds in all accounts with connections with Russia as part of the new EU sanctions. The NFT company emphasized freezing the funds in the wallet “irrespective of the amount.”

In the official announcement which confirmed the restriction on Russian accounts, the NFT company mentioned that the fresh sanctions against Russia and Russian nationals include financial-related restrictions. Therefore, Dapper Labs is no longer at liberty to offer Russian users crypto-asset wallets. In addition, the condition also stops it from providing account or custody services to Russia.

“Our payment processing and stored value service partner is subject to EU regulations and has directed us to take actions on all accounts held by those impacted by the October 6 restrictions, consistent with the EU law.”

Dapper Labs Hits Russian Accounts with Restrictions

As a result of Dapper Labs’ adherence to the sanctions, all Russian accounts can no longer access Dapper Balance Purchases. Additionally, no more buying, selling, or gifting of any Moment across all Dapper Sports. The impacted accounts will also be unable to withdraw from their Dapper accounts.

Dapper Labs, however, said all these accounts with Russian accounts are not closed. That means that the account holders can still have access to their NFTs but only view them. Similarly, NFTs that impacted users previously bought still belong to them. The company added that any Moments Russian account holders own would also remain their properties. Dapper Labs apologize for the inconvenience, adding that it is “closely monitoring this situation as it unfolds.”

The EU keeps taking strict measures against Russia after the Ukraine invasion. Part of the new restriction stops Russians from accessing their crypto investments. Majorly the main target is senior military officials, key decision-makers, propagandists, and oligarchs. Notably, the Oct 6 sanctions are the 8th set of economic and political measures against Russia.

Russia Faces Multiple Sanctions

Russia is still trying to navigate through the plethora of sanctions against it. As a result, the country is now considering using the digital ruble in international deals with Russia. This is even though it is still in the pilot phase of unveiling its CBDC development. With plans to use the digital ruble for mutual settlements by 2023, the central bank is now testing it for bank settlement.

Anatoly Aksakov, the head of Russia’s lower house of parliament’s finance committee, noted:

“The topic of digital financial assets, the digital ruble, and cryptocurrencies are currently intensifying in society, as Western countries are imposing sanctions and creating problems for bank transfers, including in international settlements. If we launch this [digital ruble], other countries will start actively using it in the future and US control over the global financial system will effectively end.”

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