OpenSea and MetaMask node service providers block certain regions in compliance with new sanctions, sparking centralization controversy again.

Leading multi-chain wallet MetaMask and NFT trading platform OpenSea have successively disabled users from certain regions in compliance with jurisdictional sanction policies. The crypto community believes that it is only a matter of time before cooperating with regulatory authorities to review individual IP addresses, indicating the need for more decentralized alternative solutions.

MetaMask

The cryptocurrency wallet MetaMask uses the blockchain node infrastructure Infura as its default endpoint. However, Infura has blocked certain regions in compliance with sanctions policies, including:

• Iran
• North Korea
• Cuba
• Syria
• Crimea
• Donetsk
• Luhansk

Infura mistakenly blocked access from Venezuela, and the official explanation was provided on Twitter here:

Due to new sanctions policies from the United States and other jurisdictions, we mistakenly applied a broader block. We appreciate the prompt feedback, and services have now been restored. We apologize for any inconvenience caused to users affected without cause.

OpenSea

OpenSea's restriction policy is synchronized with Infura. A spokesperson mentioned here:

We have a zero-tolerance policy for individuals, entities, and users from sanctioned countries using our services. If we find individuals violating our sanctions policy, we will take swift action and ban the related accounts.

Community Perspectives

Larry Cermak, Vice President of Research at The Block, pointed out that if Metamask/Infura is willing to block IP addresses from countries like Venezuela, it is only a matter of time before regulatory agencies review individual IPs. Therefore, there is an urgent need for alternative solutions now, hoping that other infrastructures like Alchemy will not follow suit. He stated:

All interactions related to crypto should default to using VPNs. It's also possible to set up a local node when using MetaMask or other wallets, but apparently not many people do so. The most important thing is to exert pressure on the wallets, forcing them not to comply with sanctions policies; they should remain neutral.

Solutions

In addition to VPNs, MetaMask also urged users to customize their network endpoints:

1. Click on Account.

2. Add Network.

3. Enter the network name such as Ethereum, Polygon, obtain the endpoint address from Alchemy or other infrastructure service providers, and ensure the Chain ID matches the main network.

The compliance of crypto products with sanctions policies has once again sparked controversy over decentralization. The community believes that decentralization is just a concept and difficult to achieve in reality. Jacob Cantele, COO of MetaMask, responded here:

As a service provider, MetaMask can run with any node, and users can run their own nodes, giving them the power to participate, withdraw, and decide on anything. Of course, they can also choose to access the blockchain through convenient services like Infura.