MetaMask & OpenSea Blocks Expose How Centralized Web3 Really Is
According to reports, MetaMask and OpenSea are blocking Iranian and Venezuelan users. MetaMask explained that it is due their service provider Infura blocks applying ‘legal compliance’ in some jurisdictions.
Important elements of the Ethereum ecosystem, MetaMask and Infura, moved to restrict access to users in “certain areas” amid an industry-wide focus on the risk cryptocurrencies pose for evading international sanctions.
MetaMask wrote in an official blog post:
“By default, MetaMask accesses the blockchain via Infura, which is unavailable in certain jurisdictions due to legal compliance.
When you attempt to use MetaMask in one of those regions, you’ll receive this error message:”
The post did not detail what “certain jurisdictions” were impacted, but Venezuela-based users were have reported service interruptions.
After the initial publication of this article, Infura said in a series of tweets that the restrictions were intended but made too broad through a technical error.
In response to the concerns we have been hearing, we want everyone to know that we corrected the problem that so many of you have pointed out. In changing some configurations as a result of the new sanctions directives from the United States and other jurisdictions, we
A VPN could theoretically be used to circumvent the ban. MetaMask has notified affected users that they will need to export their recovery phrase for their wallets. Notably, MetaMask can not outright block users from accessing their Ethereum wallets, meaning they should still be able to recover their funds.
OpenSea blocks Iranian users
MetaMask is not the only entity applying censorship. OpenSea, the world’s biggest NFT marketplace, is also reportedly blocking Iranian users from its platform. Several NFT artists took to Twitter to announce that they were unable to access their accounts today, meaning that they are now unable to view their listings or sell their work.
An artist and NFT collector known as Bornosor said in tweeted that the ban was not IP address based, but targeted the nationality instead.
Apprently the @opensea Mass Purge of Iranian accounts is not happening based on IP Address and its based solely on Natuonality!
They’ve deleted @ParinHeidari’s account AND delisted her collection with more than 200 ETH of volume.
It’s not uncommon for centralized cryptocurrency exchanges to limit usage by jurisdiction. However, MetaMask and OpenSea are often referred as Web3 infrastructure. These bans demonstrate that they can be centralized points of failure. MetaMask is the most popular Web3 wallet and OpenSea is the leading NFT marketplace, which raises questions about how decentralized Web3 really is.
Tesla CEO, Elon Musk and Block CEO, Jack Dorsey earlier raised their skepticism of Web3, due to the large scale funding in the space from Silicon Valley VC giants like Andreessen Horowitz.
Crypto advocates have pointed out that the wave of bans likely has something to do with sanctions on Iran and Venezuela imposed by the United States. The White House has heavily ramped up sanctions on Russia this week following its Ukraine invasion, which could be a warning sign of things to come for Russian Web3 users.
