Nikolas Sargeant
Marinade Finance, the top DeFi protocol on Solana, is preventing UK users from accessing their platform. They are taking this action due to concerns about compliance with FCA regulations. This decision comes after Orca Finance also implemented a similar measure, and it is aimed at addressing the "compliance concerns" associated with FCA regulations.
UK Users Blocked By Marinade Finance
Marinade Finance, the biggest DeFi protocol on Solana blockchain, is now blocking users from the region due to new regulations from the FCA.
The landing page for UK users on Marinade Finance now shows a warning message. However, it explains that UK clients can still take certain actions, such as withdrawing liquidity, making delayed claims, or delaying unstaking via the SDK. This is not happening just within Marinade, but Orca Finance, the largest decentralized exchange on Solana, has also implemented geo-blocking measures for UK users.
Centralized platforms rarely have restrictions based on geography and do not require know-your-customer (KYC) checks like decentralized protocols. Marinade Finance is currently a prominent presence on the Solana blockchain, with $248 million in total value locked (TVL) across its native and liquid staking products. Data from DefiLlama shows that the Solana blockchain holds approximately $350 million in total assets. Marinade Finance offers competitive annual yields, including 8.15% for native staking and 7.7% for liquid staking, with native staking being introduced earlier this year.
How The FCA Restrictions Are Affecting UK Crypto
The Financial Conduct Authority (FCA) has implemented new rules that are attracting attention in the crypto sector. These rules are focused on regulating promotional campaigns for crypto products and services. However, these changes have led many organizations to reconsider their business strategies in the region.
Marinade Finance's decision is in line with the crypto industry's response to FCA regulations. Bybit and PayPal, centralized crypto platforms, have exited the UK market. Luno has even blocked certain customer investments in crypto. Binance, a major cryptocurrency exchange, has temporarily halted new UK customer sign-ups.
