Marinade Finance, the largest decentralized finance (DeFi) protocol on the Solana blockchain with over $248 million in total value locked, has implemented restrictions blocking users in the United Kingdom from accessing its platform due to concerns about complying with new regulations from the UK’s Financial Conduct Authority (FCA).
Specifically, Marinade cites the FCA’s recently implemented promotions rules that place strict limitations on the marketing and advertisement of crypto-related products and services as the impetus behind geo-blocking UK users. Although UK users can no longer access Marinade’s platform directly, the company states that withdrawing funds, claiming delayed rewards tickets, and delaying unstaking can still be accomplished through its SDK.
Marinade’s move follows a similar geo-blocking of UK users by Orca Finance, another major DeFi protocol on Solana and the blockchain’s top decentralized exchange. Together, these actions by two leading Solana DeFi platforms represent a precautionary move to avoid running afoul of the FCA’s tighter regulations on crypto promotions.
Crypto companies operating centralized platforms and exchange services like Bybit and PayPal have already withdrawn entirely from the UK market following the promotion rules. Others such as Binance have temporarily paused new sign-ups. However, geo-blocking based on location remains relatively rare among decentralized protocols like Marinade which do not require know-your-customer (KYC) information. The steps taken by these major Solana DeFi protocols hint at a wider industry impact as crypto platforms grapple with stricter regulations in the UK.
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