Marinade Finance, a top Solana-based DeFi protocol, blocks UK users due to FCA compliance concerns. Orca Finance follows suit with geo-blocking.
Key Takeaways
- Marinade Finance, Solana’s largest DeFi protocol, restricts access to UK users due to FCA compliance concerns.
- Orca Finance, another Solana-based DeFi platform, also implements geo-blocking for UK users.
- Marinade Finance currently holds $248 million in total value locked (TVL) on the Solana blockchain.
- FCA regulations are impacting the crypto industry, leading to withdrawals and restrictions by various platforms.
Marinade Finance, the leading decentralized finance (DeFi) protocol running on the Solana blockchain, has initiated measures to block access for users based in the United Kingdom.
This decision comes in response to concerns related to compliance with regulations set forth by the Financial Conduct Authority (FCA).
JUST IN: 🇬🇧 Solana's largest DeFi protocol, Marinade Finance, has blocked UK users from accessing the site.
— Watcher.Guru (@WatcherGuru) October 23, 2023
Marinade Finance Makes a Move
The move by Marinade Finance follows a similar action taken by Orca Finance, another prominent DeFi platform on Solana. Both platforms are reacting to what they describe as “compliance concerns” stemming from recent FCA regulations.
For UK users attempting to access Marinade Finance, a warning message now greets them on the landing page.
However, the message also provides some clarity, stating that UK clients can still perform certain actions such as withdrawing liquidity, claiming delayed tickets, or delaying unstaking through the platform’s SDK.
Notably, geo-blocking measures like these are relatively uncommon in the world of centralized platforms, where such restrictions are infrequent and decentralized protocols often lack know-your-customer (KYC) checks.
Marinade Finance holds a substantial presence on the Solana blockchain, boasting a total value locked (TVL) of $248 million across its native and liquid staking products.
The Solana blockchain itself holds approximately $350 million in total assets, according to data from DefiLlama.
Moreover, Marinade Finance offers competitive annual yields, with rates of 8.15% for native staking and 7.7% for liquid staking, the latter being introduced earlier this year.
Concluding Thoughts
The decision by Marinade Finance to block access for UK users is indicative of the broader impact of FCA regulations on the cryptocurrency industry within the UK.
While the FCA’s new guidelines aim to regulate promotional activities related to crypto products and services, they have inadvertently prompted various entities, including centralized platforms like Bybit and PayPal, to withdraw from the UK market.
Luno, for instance, has taken steps to block certain customer investments in cryptocurrencies, and Binance, one of the world’s largest cryptocurrency exchanges, has temporarily halted new sign-ups from UK customers.
These developments underscore the evolving landscape of crypto regulation and its impact on both decentralized and centralized platforms operating in the UK market.
