Marinade Finance, the largest decentralized finance (DeFi) protocol on the Solana blockchain, has announced that it will no longer serve users in the United Kingdom due to regulatory concerns. The platform, which allows users to stake their Solana tokens and earn rewards, cited the new rules and regulations promulgated by the UK Financial Conduct Authority (FCA) as the reason for its decision.
UK IP addresses blocked
According to a message displayed on its website, Marinade Finance has blocked access to its site from UK IP addresses. Users in the UK can only withdraw liquidity, claim delayed tickets, or delay unstake via the platform’s SDK. The message also states that the platform is working on a solution to comply with the FCA’s requirements and hopes to resume service in the UK soon.
New FCA guidelines
The FCA has recently introduced new guidelines for crypto asset promotions, which aim to make crypto marketing more clear, fair, and not misleading. The guidelines apply to firms that issue or approve financial promotions of crypto assets or provide services related to them. The FCA requires such firms to have adequate systems and controls in place to ensure compliance and to obtain prior authorization from the regulator before engaging in any promotional activities.
Other crypto companies that have withdrawn from the UK
The FCA’s guidelines have caused some crypto platforms to reconsider their operations in the UK market. Besides Marinade Finance, another Solana-based DeFi platform, Orca Finance, has also restricted access for UK users from its front end. Other crypto companies, such as PayPal, ByBit, and Binance, have also withdrawn or suspended some of their services in the UK in response to the FCA’s regulations.
Marinade Finance is one of the most popular and successful DeFi protocols on Solana, which is a fast-growing blockchain network that claims to offer high scalability, low fees, and interoperability. Marinade Finance has over $2 billion worth of Solana tokens staked on its platform and offers an annual percentage yield (APY) of around 7.5%. The platform also supports other Solana-based tokens, such as Raydium, Serum, and Saber.