Dapper Labs blocks Russian accounts from using its payment services, the company announced this week.
The decision was taken following sanctions imposed by the European Union on Thursday, targeting Russia and Russian nationals. Dapper, which specializes in NFT collectibles, said it was instructed to take action by its payment and stored value processing partner, which is subject to EU regulations.
“It is now prohibited to provide crypto-asset wallet, account or custody services of any value to accounts with ties to Russia,” Dapper said. declared in a press release. “However, Dapper did not close the accounts.”
Users affected by the partial suspension will not be able to buy, sell or gift digital collectibles on platforms such as UFC Strike, NBA Top Shot and NFL All Day. They will also not be able to withdraw funds from their Dapper accounts or make purchases with existing balances.
However, users of Russian-linked accounts will still be able to access and view the NFTs they have purchased. The company emphasized that affected users will retain ownership of their assets, even if they cannot sell them.
“Regardless of this new regulation, any NFT previously purchased by an affected user continues to belong to that user,” Dapper said. “Any Moments you own and any Dapper balances continue to be your property.”
While Dapper has signed deals with major US sports leagues, he has also allowed the sale of collectibles related to Russian fighters who have competed in the UFC, such as Khabib Nurmagomedov. The NFT with the highest floor price for sale on UFC Strike represents one of Nurmagomedov’s victories, with a starting price of $3,700.
Dapper did not respond to requests for comment from Decrypt.
The EU sanctions represent an escalation from previous restrictions on crypto set in April. According to a Press release from the EU, “existing bans on crypto assets have been strengthened” by banning services regardless of the value of a wallet, which was previously capped at €10,000.
Russia also took steps to restrict crypto transactions this week, blacklisting OKXthe world’s second-largest cryptocurrency exchange by volume, according to CoinGecko.
More web3 companies are likely to follow with restrictions in the wake of new EU sanctions. This could potentially put companies in a difficult position in the future, as they balance the burden of regulatory compliance with a generally censorship-resistant community.
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