The largest decentralised finance (DeFi) system on the Solana blockchain, Marinade Finance, has started blocking access to its users who are situated in the United Kingdom.
This judgement addresses “compliance concerns” pertaining to Financial Conduct Authority (FCA) laws and comes after a similar move by Orca Finance.
UK Users’ Marinade Finance Blocks
In reaction to new FCA rules, Marinade Finance, the biggest DeFi protocol on the Solana blockchain, has started preventing users in the area from accessing it.
UK Users Restricted from Solana’s Top DeFi Platform,UK Users Restricted from Solana’s Top DeFi Platform
A caution notice is now displayed on the landing page for users in the UK who try to visit Marinade Finance. It makes clear, though, that certain operations are still available to UK clients: “Users may withdraw liquidity, claim delayed tickets, or delay unstake via our SDK.”
Marinade’s behaviour is not an isolated incident. The largest decentralised exchange on Solana, Orca Finance, has further implemented geo-blocking for users in the United Kingdom.
Due to the rarity of geo-restrictions and the lack of know-your-customer (KYC) checks on decentralised protocols, the new limitation is unusual on centralised platforms.
Presently, Marinade Finance has a significant presence on the Solana blockchain, with a $248 million total value locked (TVL) in its native and liquid staking solutions. Entire assets on the Solana blockchain are estimated to be worth $350 million, based on DefiLlama statistics.
With native staking having been implemented earlier this year, Marinade Finance also provides attractive yearly returns, including 8.15% for native staking and 7.7% for liquid staking.
The FCA’s Regulations’ Effects on Cryptocurrency in the UK
The cryptocurrency industry has paid close attention to the Financial Conduct Authority’s (FCA) most recent directives. The new regulations seek to control advertising efforts for goods and services based on cryptocurrencies. Nevertheless, these alterations have inadvertently prompted some organisations to reevaluate their commercial approaches within the area.
The action taken by Marinade Finance is indicative of larger patterns in the cryptocurrency sector’s reaction to FCA rules. PayPal and Bybit, two centralised cryptocurrency systems, have left the UK market.
Luno has even blocked some cryptocurrency investments made by customers. One of the biggest cryptocurrency exchanges in the world, Binance, has temporarily halted taking on new users from the UK.
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