WalletConnect restricts service in Russia following OFAC guidance

Web3 connection protocol WalletConnect has restricted Russian users from utilizing its work pursuing caller sanctions by the U.S. Office of Foreign Assets Control (OFAC).

“In airy of the latest ineligible and OFAC guidance, WalletConnect has restricted the availability of the WalletConnect Protocol successful Russia. Certain regions of Ukraine were temporarily impacted; work has since resumed.”

On Oct. 31, WalletConnect’s CEO Pedro Gomes confirmed that the restrictions complied with the updated OFAC guidelines and were kickstarted connected Oct. 30.

According to Gomes, the level had restricted entree to its services for immoderate parts of Ukraine. However, these restrictions person been lifted arsenic of property time.

Additionally, the CEO debunked rumors that the protocol blocked users from different non-sanctioned countries, saying, “We tin corroborate that nary different countries were blocked.”

Crypto assemblage displeased

Meanwhile, members of the crypto assemblage person expressed displeasure astatine WalletConnect’s caller move, pointing retired that it contradicts the tenets of decentralization.

An X user, Krakovia, said, “Very cringe. Seems you’re not each successful for web3, aft all.”

Crypto developer Naim Boubziz said:

“What is the OFAC papers specifying this obligation? I’m funny to work the papers that mentions the regulation of a messaging protocol specified arsenic WalletConnect.”

Similarly, different users noted that the regularisation mightiness not beryllium effectual arsenic the affected users tin simply usage a VPN.

OFAC Sanctions connected Crypto-related Entities

Notably, WalletConnect’s enactment comes pursuing a caller update of the OFAC sanctions database for entities participating successful the Russia/Ukraine war, arsenic good arsenic that of Israel and Palestine.

Over time, OFAC has engaged successful different strategies to curb the illicit usage of crypto to enactment warfare efforts. Some of the strategies see the listing of definite crypto companies connected the sanctions list.

The authorities precocious sanctioned a Gaza-based crypto institution for allegedly facilitating crypto transactions for Hamas terrorists.

The station WalletConnect restricts work successful Russia pursuing OFAC guidance appeared archetypal connected CryptoSlate.