Cryptocurrency News

Animoca Brands Resolve To Impose Restrictions On Russians

Animoca Brands, one of the leading blockchain gaming platforms has announced that it will impose restrictions on Russians. This was revealed through an update from Bloomberg in which the managers of the company said that the move has become imperative considering the legal implications of continuing with such a service to the country. 

According to the co-founder of the company, Yat Siu, Animoca Brands will no longer sell its shares to Russians in compliance with sanctions placed on the country by the EU, US and their NATO allies. 

The move is not surprising, considering the recent invasion of Ukraine by Russia. This led to widespread sanctions against Russia. In compliance, some companies based within the NATO jurisdictions have moved against Russian interests. In this case, Animoca Brands, one of the prominent Game-Fi platforms, joined the ranks of companies poised to take punitive actions against Russia.

Non Compliance Could Have Serious Consequences

Siu, who spoke on behalf of the company stated that non-compliance with the sanctions against Russia is inimical to the company’s interests. He said this is similar to the North Korean sanctions that mandated that companies comply with. Those that breached them could be excluded from the financial system. He also made it clear that subsidiaries of Animoca Brands such as Lympo and Gamee are not excluded from the parent company’s new policy towards Russia. The implication is that these subsidiaries will henceforth suspend all dealings with Russia and its citizens in compliance with the elaborate sanctions against the country. This is accomplished by making the services that are available within the Animoca Brand’s ecosystem inaccessible within the country.

Impact of Policy On The Animoca Brands

On the impact that the policy would have on the Animoca Brands business, Sui said that the number of Russian customers that have been onboarded by the Animoca Brands is not significant. He maintained that the ban on customers and prospective customers from the country will not have a serious impact on the company’s books. Sui is confident that Restricting the Russians will not have adverse consequences for the company’s business. 

Even though Sui did not explain the Russian restrictions in detail, he made it clear that the sale of the company’s shares to Russians will be stopped while Russian IPs will also be blocked. 

In essence, NATO countries are effectively excluding Russians and businesses that are of Russian origin in a bid to ensure that the ban on the energy giant is complete and effective. There are already postulations that the Russian government could find means of going around the sanctions and the primary vehicle that has been mentioned is cryptocurrency. It is possible that in the coming weeks, crypto and blockchain companies will be scrutinized closely to ensure that they do not run foul of the sanctions by NATO.

The US has already taken keen interest in cryptocurrency regulations while the effects of the Canadian protests has shown the extent that governments could go in ensuring that policies are enforced.

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