Marinade Finance has ceased operations in the UK, citing FCA compliance concerns
Marinade Finance is currently the largest DeFi protocol on Solana. Marinade Finance has banned UK users over concerns over FCA regulations. The FCA's financial promotion regime has led to the withdrawal of several cryptocurrency entities from the UK market, including Marinade Finance.
Recently, the leading decentralized finance (DeFi) protocol running on the Solana blockchain has stopped providing services to users in the United Kingdom. Interestingly, despite the exit news, the price of the Marinade (MNDE) token is up 22.54% today. The token reached a daily high of $0.07032.
The decision comes in response to growing compliance concerns under the regulatory framework established by the UK's Financial Conduct Authority (FCA).
Compliance issues prompt UK market exit.
On October 23, users from the UK were greeted with a block page when trying to access Marinade Finance's website from a local IP. A message on the page restricts further access to the platform citing “matters relating to compliance with the rules and regulations issued by the UK Financial Conduct Authority”.
In particular, the protocol extended the option for UK-based users to perform certain actions, including withdrawing liquidity, requesting delayed tickets and mismatching using a software development kit (SDK).
Marinade Finance's decision reflects a growing trend in the cryptocurrency industry, as other prominent players such as Binance and PayPal have withdrawn their services from the UK market due to regulatory issues.
This move is in line with the stricter measures imposed by the FCA, which shows an increased focus on ensuring transparency and fairness in the cryptocurrency sector.
Impact on Solana Blockchain
With Marinade Finance holding a whopping $241 million, which accounts for 70 percent of all funds locked on the Solana blockchain, its exit from the UK market is set to have a major impact.
However, the exit of Marinade Finance from the UK market did not affect the price of Solana (SOL). SOL is up 7.09% to trade at $31.78 today.
The release highlights the critical role regulatory compliance plays in DeFi protocols, especially given the strict guidelines set by regulatory authorities.
While some DeFi companies are leaving the UK, others such as OKX and MoonPay are preparing to comply with the FCA's rules. The industry is likely to witness further adjustments aimed at developing a transparent and compliant environment for cryptocurrency operations globally.
