Marinade Finance Blocks UK Users Amid Compliance Concerns, Next in Line in Crypto Services Shift
Summary:
Marinade Finance, a major DeFi protocol on the Solana blockchain, has started blocking users from the United Kingdom, citing compliance with local regulatory rules. Despite the block, users are still able to engage in select actions. Marinade manages about $241 million, equating to 70% of all assets on Solana. The move by Marinade follows similar actions by other crypto services, such as Binance, PayPal, and Bybit, who have also halted certain functions for their UK users due to regulatory guidelines.
Marinade Finance, the predominant decentralized finance (DeFi) protocol on the Solana blockchain, has allegedly begun denying access to users based in the United Kingdom. The issue was first observed by U.K. customers on October 23. Trying to connect to Marinade's platform from a British IP address leads to an information page stating that the site is "not accessible in the United Kingdom due to compliance with the regulations established by the U.K. Finance [sic] Conduct Authority". However, users are still able to withdraw liquidity, claim deferred tickets, or delay unstakes using the SDK. Marinade has approximately 75,000 users and manages $241 million in assets, corresponding to 70% of all assets on the Solana blockchain. Marinade has not indicated specific regulations leading to its decision, but it is not the first to leave the U.K. market in recent times. Crypto exchange Binance stopped catering to British users on October 16 due to accreditation issues with its local business associate. PayPal has likewise discontinued crypto transactions for British clients, as has Bybit at the end of September. On October 8, the U.K. Financial Conduct Authority (FCA) initiated its Financial Promotions (FinProm) Regime, requiring crypto firms to promote their products in a "fair, clean and transparent" manner. Certain businesses, such as OKX and MoonPay, have already declared their intention to adhere to the FCA guidelines. Marinade Finance was contacted by Cointelegraph for additional details but has not yet responded.
Published At
10/24/2023 11:32:35 AM
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