Marinade Finance, the largest decentralized finance (DeFi) protocol on the Solana blockchain, has recently initiated a process to block access for users based in the UK.
This decision follows a similar action by Orca Finance and is responding to “compliance concerns” related to the Financial Conduct Authority (FCA) regulations.
Marinade Finance Blocks UK Users
Marinade Finance, the largest DeFi protocol on the Solana blockchain, has begun blocking access to users in the region, a restriction coming in response to the recent regulations from the FCA.
The landing page for UK users attempting to access Marinade Finance now displays a warning message. However, it clarifies that UK clients can still perform specific actions, stating, “Users may withdraw liquidity, claim delayed tickets, or delay unstake via our SDK.”
This action by Marinade is not a standalone occurrence. Orca Finance, known to be the biggest decentralized exchange on Solana, has also put geo-blocking measures in place for users in the UK.
The new restriction is uncommon on centralized platforms due to geo-restrictions infrequency and the absence of know-your-customer (KYC) checks on decentralized protocols.
Marinade Finance currently boasts a substantial presence on the Solana blockchain, with a total value locked (TVL) of $248 million across its native and liquid staking products. The Solana blockchain holds approximately $350 million in total assets, according to data from DefiLlama.
Marinade Finance also offers competitive annual yields, including 8.15% for native staking and 7.7% for liquid staking, with native staking introduced earlier this year.
The Implications of FCA’s Regulations on Crypto in the UK
The latest guidelines by the Financial Conduct Authority (FCA) have garnered significant attention within the crypto sector. The new rules aim to regulate promotional campaigns of crypto-based products and services. However, these changes have unintentionally caused multiple entities to reassess their business strategies in the region.
The move by Marinade Finance reflects broader trends in the crypto industry’s response to FCA regulations. Centralized crypto platforms such as Bybit and PayPal have withdrawn from the UK market. Luno has gone so far as to block some customer investments in crypto. Binance, one of the world’s largest cryptocurrency exchanges, has temporarily stopped accepting new UK customers.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
Be the first to comment