- Marinade Finance is currently the largest DeFi protocol on Solana.
- Marinade Finance has blocked UK users due to concerns over FCA regulations.
- The FCA’s Financial Promotions Regime has prompted several cryptocurrency entities, including Marinade Finance, to exit the UK market.
In a recent development, Marinade Finance, a leading decentralized finance (DeFi) protocol operating on the Solana blockchain, has halted its services for users in the United Kingdom. Interestingly, the price of the Marinade (MNDE) token has surged by 22.54% today despite the exit news. The token has hit a daily high of $0.07032.
The decision comes in response to growing compliance concerns arising from the regulatory framework established by the UK Financial Conduct Authority (FCA).
Compliance issues prompt UK market exit
Users from the UK were greeted with a block page on October 23 when attempting to access Marinade Finance’s website from a local IP. The message displayed on the page cited “compliance concerns relating to rules and regulations promulgated by the UK Finance Conduct Authority,” thus restricting any further access to the platform.
Notably, the protocol has extended an option for UK-based users to perform specific actions, including withdrawing liquidity, claiming delayed tickets, and delaying unstake through the use of its software development kit (SDK).
Marinade Finance’s decision reflects a growing trend within the cryptocurrency industry, as several other prominent players, such as Binance and PayPal, have also retracted their services from the UK market due to regulatory challenges.
This move aligns with the stringent measures imposed by the FCA, signalling an intensified focus on ensuring transparency and fairness within the cryptocurrency sector.
Impact on the Solana Blockchain
With Marinade Finance holding a substantial $241 million, which accounts for a remarkable 70% of all funds locked on the Solana blockchain, its exit from the UK market is poised to have significant repercussions.
However, Marinade Finance’s exit from the UK market has not had an impact on the price of Solana (SOL). SOL has surged by 7.09% to trade at $31.78 today.
The exit underscores the pivotal role regulatory compliance plays in the operations of DeFi protocols, especially in the context of stringent guidelines set forth by regulatory authorities.
While some DeFi firms are leaving the UK, other companies like OKX and MoonPay are preparing to adhere to FCA’s regulations. The industry is likely to witness further adjustments aimed at fostering a transparent and compliant environment for cryptocurrency operations globally.