{"id":2965758,"date":"2023-11-01T07:30:57","date_gmt":"2023-11-01T11:30:57","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/plato-data\/walletconnect-restricts-service-in-russia-following-ofac-guidance\/"},"modified":"2023-11-01T07:30:57","modified_gmt":"2023-11-01T11:30:57","slug":"walletconnect-restricts-service-in-russia-following-ofac-guidance","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/walletconnect-restricts-service-in-russia-following-ofac-guidance\/","title":{"rendered":"WalletConnect restricts service in Russia following OFAC guidance"},"content":{"rendered":"
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Web3 communication protocol WalletConnect has restricted Russian users from using its service following recent sanctions by the U.S. Office of Foreign Assets Control (OFAC).<\/p>\n

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\u201cIn light of the latest legal and OFAC guidance, WalletConnect has restricted the availability of the WalletConnect Protocol in Russia. Certain regions of Ukraine were temporarily impacted; service has since resumed.\u201d<\/p>\n<\/blockquote>\n

On Oct. 31, WalletConnect\u2019s CEO Pedro Gomes confirmed that the restrictions complied with the updated OFAC guidelines and were kickstarted on Oct. 30.<\/p>\n

According to Gomes, the platform had restricted access to its services for some parts of Ukraine. However, these restrictions have been lifted as of press time.<\/p>\n

Additionally, the CEO debunked rumors that the protocol blocked users from other non-sanctioned countries, saying, \u201cWe can confirm that no other countries were blocked.\u201d<\/p>\n

Crypto community displeased<\/span><\/h2>\n

Meanwhile, members of the crypto community have expressed displeasure at WalletConnect\u2019s new move, pointing out that it contradicts the tenets of decentralization.<\/p>\n

An X user, Krakovia, said<\/span><\/a>, \u201cVery cringe. Seems you\u2019re not all in for web3, after all.\u201d<\/span><\/p>\n

Crypto developer Naim Boubziz said<\/a>:<\/p>\n

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\u201cWhat is the OFAC document specifying this obligation? I\u2019m curious to read the document that mentions the limitation of a messaging protocol such as WalletConnect.\u201d<\/p>\n<\/blockquote>\n

Similarly, other users noted<\/span><\/a> that the restriction might not be effective as the affected users can simply use a VPN.<\/p>\n

OFAC Sanctions on Crypto-related Entities <\/span><\/h2>\n

Notably, WalletConnect\u2019s action comes following a recent update of the OFAC sanctions list for entities participating in the Russia\/Ukraine war, as well as that of Israel and Palestine.<\/p>\n

Over time, OFAC has engaged in different strategie<\/a>s to curb the illicit usage of crypto to support war efforts. Some of the strategies include the listing of certain crypto companies on the sanctions list.<\/p>\n

The authorities recently sanctioned<\/span> <\/a>a Gaza-based crypto company for allegedly facilitating crypto transactions for Hamas terrorists.<\/p>\n