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Marinade, Solana's Top DeFi Protocol, Implements Restrictions for UK Users

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Oct 26, 2023 at 12:30 pm

Marinade Finance, a well-recognized player in the decentralized finance (DeFi) landscape of the Solana ecosystem, has recently taken decisive action to limit access to its platform for users based in the United Kingdom. This decision arises from concerns surrounding regulatory adherence within the UK, particularly in response to the comprehensive regulatory framework put forth by the Financial Conduct Authority (FCA).

For individuals residing in the United Kingdom who attempt to access Marinade's platform, they are now greeted by a precautionary notice. Nevertheless, it is imperative to understand that this message reassures users of their continued ability to perform critical actions, such as withdrawing liquidity, claiming deferred tickets, or postponing the unstaking process, thanks to the platform's software development kit (SDK).

Marinade Finance holds a pivotal role within the Solana blockchain, significantly contributing to the total value locked (TVL) in the network. The platform oversees assets with a combined value of approximately $248 million, encompassing both native and liquid staking products. Furthermore, it is noteworthy that the broader Solana blockchain boasts assets worth around $350 million, as indicated by DefiLlama.

Presently, Marinade offers an alluring annual yield of 8.15% for native staking and 7.7% for liquid staking. The inclusion of native staking was introduced earlier this year, expanding the range of offerings available on the platform.

Concurrently, Orca Finance, a prominent decentralized exchange operating on the Solana network, has also instituted measures to restrict access for users located in the United Kingdom. These actions appear to be a response to the changes in regulations introduced by the FCA, particularly those pertaining to the marketing of cryptocurrency-related products and services.

While several centralized cryptocurrency firms, such as Bybit and Paypal, have chosen to exit the UK market, and Binance temporarily suspended new user registrations from the UK in response to the ever-evolving regulatory landscape orchestrated by the FCA, it is intriguing to note that geo-restrictions are relatively uncommon within the realm of decentralized protocols. The majority of decentralized protocols do not impose obligatory know-your-customer (KYC) procedures on users, aligning with the traditional ethos of DeFi.

The actions taken by Marinade Finance and Orca Finance underscore the challenges and intricacies associated with navigating the constantly evolving regulatory environment for DeFi platforms. As the DeFi sector continues to expand and adapt to evolving regulatory standards, these measures underscore the decentralized nature of the crypto industry and its capacity to adjust in response to varying global regulatory pressures.

Read more: Crypto's Quiet Revolution: Financial Giants Secretly Embrace the Future

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