Flow blockchain developers Dapper Labs has suspended Russian accounts after the European Union (EU) imposed new sanctions against Russia and its nationals.

Announced on Oct. 6, the latest set of EU sanctions on Russia stipulates a full ban on the provision of crypto-asset wallets, accounts and custody services, regardless of the total value of the assets.

Following the sanction announcement, Dapper stated that accounts with connections to Russia will no longer be able to sell, purchase or gift nonfungible tokens (NFTs), withdraw funds from their accounts or add to their balances, stating:

“It is now prohibited to provide crypto-asset wallet, account, or custody services of any value to accounts with connections to Russia, irrespective of the amount of the wallet.”

The firm outlined that as its “payment processing and stored value service partner is subject to EU regulations,” Dapper has been directed to impose the restrictions on these accounts under EU law.

“However, Dapper has not closed the accounts. Users impacted by these actions can continue to access and view their NFTs. Additionally, regardless of this new regulation, any NFT previously purchased by an impacted user continues to belong to that user,” the firm stated.

The sanctions on Russia include a complete ban on cross-border crypto payments between Russians and the EU, which also results in the prohibition of “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.”

With Dapper following orders to bar access to Russians, it marks another occasion in which a crypto-related company has had to yield to regulatory pressure to avoid compliance issues, much like the Tornado Cash crypto mixer debacle from August.

On Twitter, user @XBT002 criticized Dapper over the move, as they argued that it works against the censorship-resistant notion of blockchain tech:

“If you’re freezing ‘accounts,’ you’re actively censoring in an industry that was founded around censorship resistance.”

In response, @EIDumboTS, who claims to be a Dapper employee, reiterated that the firm was “directed” to take this action on the Russian accounts and therefore had its hands tied in this situation.

We are working quickly to understand the full implications of these sanctions on our community. And of course, we have sent communications out to all impacted Dapper wallet holders and our wider Dapper community too.

— Luke (@ElDumboTS) October 9, 2022

Dapper is a centralized firm headquartered in Vancouver, Canada with a reported valuation of $7.6 billion. Alongside the Flow blockchain, Dapper has launched a host of popular NFT projects including NBA Top Shot, NFL All Day and Crypto Kitties. The company is gearing up to launch