Solana’s biggest Diffie protocol restricts access to UK users

Marinade Finance, the largest decentralized finance (DeFi) protocol on the Solana blockchain, has recently begun the process of blocking access to users based in the United Kingdom.

This decision follows a similar move by Orca Finance and is in response to “compliance concerns” related to Financial Conduct Authority (FCA) regulations.

Marinade Finance blocks UK users.

Marinade Finance, the largest DeFi protocol on the Solana blockchain, has started blocking access to users in the region, a ban that comes in response to recent FCA rules.

The landing page for UK users trying to access Marinade Finance now displays a warning message. However, it explains that UK customers can still perform certain actions, “Users can withdraw invoices, request delayed tickets or delay damages through the SDK.”

This marinade step is not an independent event. Orca Finance, the largest decentralized exchange on Solana, has also put geo-blocking measures in place for users in the UK.

The new ban on centralized platforms is unusual due to the frequency of geo-restrictions and decentralized Know Your Customer (KYC) protocols.

Marinade Finance currently boasts a significant presence on the Solana blockchain, with a total value locked (TVL) of $248 million in domestic and liquid products. The Solana blockchain holds a total of nearly $350 million in assets, according to Defillama data.

Marinade Finance also offers competitive annuity products, including 8.15% and 7.7% for liquid stocks, along with native staking, which was introduced earlier this year.

The implications of FCA regulations on Crypto in the UK

The recent guidelines from the Financial Conduct Authority (FCA) have received a lot of attention in the crypto sector. The new regulations aim to regulate promotional campaigns for crypto-based products and services. However, these changes have inadvertently caused many entities to reassess their business strategies in the region.

Marinade Finance's activity reflects broader trends in the crypto industry's response to FCA regulations. Centralized cryptocurrency platforms such as Bybit and PayPal have exited the UK market. Luno has even gone as far as banning some customer investments in crypto. Binance, one of the world's largest cryptocurrency exchanges, has temporarily stopped accepting new UK customers.