Web3 Platform WalletConnect Restricts Services in Russia Following US Guidelines

The renowned Web3 platform WalletConnect, known for linking cryptocurrency wallets, has made the decision to restrict its services in Russia due to the latest guidelines issued by the US Treasury’s Office of Foreign Assets Control (OFAC). These restrictions came into effect on October 30.

In an announcement posted on Twitter, WalletConnect stated, “In light of the latest legal and OFAC guidance, WalletConnect has restricted the availability of the WalletConnect Protocol in Russia.”

WalletConnect CEO Pedro Gomes further clarified the situation in a note to users, affirming that the company did not block services in any other countries. He stated, “There were some incorrect reports that we blocked other non-sanctioned countries. We can confirm that no other countries were blocked.”

Additionally, WalletConnect disclosed that it temporarily restricted Ukraine IP addresses until it could ensure compliant operations in areas of Ukraine that are not affected by the sanctions.

Overview of WalletConnect

WalletConnect is an open-source Web3 standard that serves as a bridge between blockchain wallets and decentralized applications (dapps).

Amidst the ongoing global regulatory uncertainty in the crypto industry, platforms like WalletConnect are facing challenging decisions. However, the recent action taken by WalletConnect to withdraw from US-sanctioned nations underscores the significance of adhering to international guidelines.

US Sanctions on Digital Asset Businesses

In October 2021, the OFAC released a new brochure containing crypto-specific guidance to navigate US sanctions effectively. The agency expects crypto operators to assume the same level of responsibility as other financial institutions in avoiding violations of sanctions.

The guideline emphasizes, “As a general matter, U.S. persons, including members of the virtual currency industry, are responsible for ensuring they do not engage in unauthorized transactions or dealings with sanctioned persons or jurisdictions.”

Amid geopolitical tensions in Russia and the Middle East, US sanctions have been enforced on crypto gateways providing services to these regions. For instance, major crypto asset service providers like Coinbase and Binance have blocked the wallets of individuals from Russia who are under US sanctions.