Marinade Finance, the leading decentralized finance (DeFi) protocol on the Solana blockchain, has recently taken steps to block users from the United Kingdom. This decision is reportedly influenced by the rules set forth by the UK Financial Conduct Authority (FCA). Furthermore, it has stirred discussions within the crypto community.
Compliance Concerns Force Marinade Finance’s Decision
On October 23, users in the UK attempting to access Marinade’s website from local IP addresses were met with an unexpected message. It stated,
“Access to this site is unavailable in the United Kingdom due to compliance concerns relating to rules and regulations promulgated by the U.K. Finance Conduct Authority.”
The message also assured users of their ability to withdraw liquidity, claim delayed tickets, or delay unstake through the provided SDK.
Significant Impact on Marinade Finance User Base and Industry Trend
Marinade Finance, boasting a user base of approximately 75,000, currently holds a staggering total value locked exceeding $265 million. This constitutes a substantial 70% of all funds locked on the Solana blockchain. The implications of this decision on the platform’s users and the Solana ecosystem at large are yet to be fully understood.
Notably, Marinade Finance isn’t the sole player opting out of the UK market. Notably, on October 16, Binance ceased accepting users from the UK, citing certification issues with its local business partner. Similarly, PayPal has restricted crypto transactions for its UK customers, and Bybit made a similar move in late September.
Regulatory Landscape: FCA’s FinProm Regime
The decision to exit the UK market aligns with a broader trend sparked by the introduction of the Financial Promotions (FinProm) Regime by the UK Financial Conduct Authority on October 8. This regime aims to bring about “fair, clean, and transparent” advertising practices within the cryptocurrency industry.
Some companies, such as OKX and MoonPay, have committed to compliance with these regulation. However, others like Marinade Finance, have chosen a different path.
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