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UK Users Shut Out From Solana-Based Marinade - Crypto Daily

source-logo  cryptodaily.co.uk 24 October 2023 11:55, UTC

Table of Contents

  • Marinade Blocks UK Users
  • Orca Finance Sets Precedent
  • A Growing Trend
  • Could Be A Significant Blow

Solana’s largest DeFi protocol, Marinade, is reportedly blocking all users in the United Kingdom over compliance concerns regarding the FCA’s rules.

Marinade Blocks UK Users

Solana's leading decentralized finance protocol, Marinade Finance, has initiated the process of blocking UK users from accessing its platform. This decision arises from "compliance concerns" tied to the regulations of the Financial Conduct Authority (FCA). The United Kingdom's regulatory landscape in the digital asset sector is undergoing significant changes, prompting companies to adjust to the new regulations to remain compliant. Marinade Finance, as the largest DeFi protocol on Solana, is now taking action.

Orca Finance Sets Precedent

Marinade Finance is not alone in taking this step. Orca Finance has also begun blocking access to users in the United Kingdom. Upon attempting to access the site, UK users are now met with a warning message.

However, they are not entirely cut off. As per the information available on the Marinade Finance landing page, UK users can still withdraw liquidity, claim delayed tickets, or delay unstaking using the SDK feature.

A Growing Trend

Marinade Finance's move aligns with a broader trend of companies responding to regulatory changes in the UK. Prominent crypto businesses like Bybit and PayPal have withdrawn from the region in response to the FCA's recently implemented promotional regulations. Luno has started blocking customer investments in cryptocurrencies, while Binance has halted accepting new UK customers.

Notably, the platforms mentioned earlier are centralized entities, making Marinade Finance's decision unique. Decentralized platforms typically avoid geo-restrictions and do not require the same level of identity validation associated with know-your-customer (KYC) measures.

Could Be A Significant Blow

Marinade Finance is a staking solution designed for the Solana network. With over 75,000 users, the protocol boasts an impressive $248 million across its staking products, making it the Solana blockchain's leader in total value locked (TVL). Since the Solana blockchain itself holds approximately $350 million in total assets, Marinade Finance contributes nearly 70% of TVL on the network.

Marinade Finance also offers annual yields of 8.15% for native staking and 7.7% for liquid staking, with native staking having been introduced earlier this year.

Therefore, the DeFi platform’s decision to exclude UK users marks an unusual occurrence within the realm of decentralized platforms, and it is poised to impact the Solana blockchain significantly.

In summary, Marinade Finance's decision to block UK users due to FCA compliance concerns reflects the evolving landscape of crypto regulations in the United Kingdom. While other centralized platforms have responded similarly, this move by a decentralized protocol is particularly noteworthy and underscores the impact of regulatory shifts on the crypto industry.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

cryptodaily.co.uk