WalletConnect, a platform that facilitates connections between crypto wallets, has made the decision to halt its services for customers in Russia.
This move is in response to new guidelines set forth by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which provides regulations regarding financial transactions and dealings with countries under sanctions.
Pedro Gomes, the CEO of WalletConnect, announced this decision via the platform on Monday. OFAC has been closely monitoring crypto activities in Russia since 2021, primarily due to the ongoing Russia-Ukraine conflict, which has led to several countries imposing sanctions on Russia.
In 2021, OFAC introduced regulations requiring virtual currency businesses to adhere to the same standards as traditional banks in order to prevent violations of sanctions.
Gomes also addressed the situation in Ukraine. He explained that WalletConnect had temporarily suspended its services in Ukraine but later resumed operations in regions of the country that were not subject to sanctions.
It is essential to note that WalletConnect’s decision to suspend services was specific to Russia and certain parts of Ukraine and did not impact other countries.