Web3 communications protocol WalletConnect has restricted Russian users from using the service following recent sanctions by the US Office of Foreign Assets Control (OFAC).
“In light of the latest legal and OFAC guidance, WalletConnect has limited the availability of the WalletConnect Protocol in Russia. Certain regions of Ukraine were temporarily affected; service has now resumed.”
On October 31, WalletConnect CEO Pedro Gomes confirmed that the restrictions met updated OFAC guidelines and would start on October 30.
According to Gomes, the platform had restricted access to its services for some parts of Ukraine. However, these restrictions have been lifted at the time of writing.
Additionally, the CEO debunked rumors that the protocol blocked users from other non-sanctioned countries, saying, “We can confirm that no other countries have been blocked.”
Crypto community dissatisfied
Meanwhile, members of the crypto community have expressed their displeasure over WalletConnect’s new move, pointing out that it contradicts the principles of decentralization.
An X user, Krakovia, said“Very cringe. It seems that you don’t really choose web3 after all.”
Crypto developer Naim Boubziz said:
“What is the OFAC document specifying this obligation? I am curious about the document that mentions the limitation of a messaging protocol like WalletConnect.”
So do other users noted that the restriction may not be effective as affected users can simply use a VPN.
OFAC sanctions against crypto-related entities
Notably, WalletConnect’s action comes after a recent update to the OFAC sanctions list for entities participating in the war between Russia and Ukraine, as well as that of Israel and Palestine.
Over time, OFAC has employed several strategies to curb the illegal use of crypto in support of war efforts. Some of the strategies include listing certain crypto companies on the sanctions list.
The authorities recently sanctioned a Gaza-based crypto company that allegedly facilitates crypto transactions for Hamas terrorists.