Animoca Brands to Halt Operations in Russia

Following the sanctions imposed by the EU on financial institutions in Russia, it seems that the crypto industry in the region will be next on the chopping block.

Based on the report by Bloomberg, platforms controlled by Animoca Brands will block Russian users from accessing them. Likewise, the software company will stop selling its shares to Russian investors.

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Animoca Brands’ decision to cut ties with the whole region stemmed from Russia’s aggression towards Ukraine and the financial sanctions imposed by the EU. 

Even though most crypto-based companies have resisted leaving the Russian market because it goes against the essence of cryptocurrencies, Animoca Brands will leave the region presumably because it is not an entirely crypto-based corporation.

Yat Siu, who is the co-founder of Animoca Brands, spoke on the decision to exit out of Russia, stating:

"The legal advice we’ve been receiving is that we now have to impose some restrictions. It’s a sanctioned country on par with North Korea. The moment we end up doing business in those areas, we might ourselves become financially excluded from the financial system."

He also mentioned that Gamee and Lympo platforms will be affected the most, but that will probably not impact the company on a larger scale.

Interestingly enough, Animoca Brands have invested in several crypto-focused platforms like the NFT marketplace OpenSea and blockchain games such as Axie Infinity and the Sandbox. Therefore, it is uncertain whether these companies will exit Russia and follow in the footsteps of their largest investor.