Marinade Finance, the leading decentralized finance (DeFi) protocol operating on the Solana blockchain, has ceased operations for users in the United Kingdom. This move, which became apparent to UK customers on October 23, is in response to compliance concerns linked to regulations set forth by the UK Financial Conduct Authority (FCA). Marinade Finance currently holds over $265 million in total value locked, representing 70% of all funds secured within the Solana blockchain.
FCA Regulations Prompt Marinade Finance to Block UK Users
Upon attempting to access Marinade‘s website from local IP addresses, UK users were met with a message explaining that access to the site was restricted due to compliance issues with rules and regulations established by the UK FCA. Although the message did not specify the exact regulations in question, it underscores the increasing impact of regulatory shifts in the cryptocurrency sector.
Marinade Finance isn’t the only entity to withdraw from the UK market in response to regulatory changes. On October 16, Binance, a prominent cryptocurrency exchange, halted the acceptance of UK users, citing issues related to certification with its local business partner. In a similar vein, payment giant PayPal ceased crypto transactions for its UK customers, following in the footsteps of Bybit‘s decision to do the same in late September.
FCA’s FinProm Regime for Cryptocurrency Firms
The UK Financial Conduct Authority introduced the Financial Promotions (FinProm) Regime on October 8. This framework seeks to regulate cryptocurrency companies, ensuring that advertising within the crypto industry remains “fair, clean, and transparent.” Some companies, including OKX and MoonPay, have already indicated their intention to comply with these newly established FCA rules.