Leading Solana-Based DeFi Protocol Blocks UK Users

Marinade Finance, Solana’s leading decentralized finance (DeFi) protocol, is now blocking users from the United Kingdom. UK customers found out the hard way on Oct. 23 while trying to access its website, Cointelegraph reported.

Draconian compliance rules

Users got the message that the site wasn’t available in the UK because of compliance concerns related to regulations and rules enforced by the national financial watchdog, the Finance Conduct Authority (FCA).

Marinade Finance accounts for more than two-thirds of all funds on Solana, with a total value locked of more than $265 million.

Joining the ranks of Binance, PayPal

Marinade isn’t the first platform to leave the UK market. Binance stopped signing up UK users on Oct. 16 after its local payment processor ceased to cooperate. Bybit left the UK in September, and PayPal has disabled crypto transactions for its UK customers. Currently, the payment provider is trying to figure out how to navigate the new and complex regulations.

“Clean and fair” advertising

The FCA introduced new rules for crypto firms to promote “fair, clean and transparent” advertising earlier this month. MoonPay, OKX, and other crypto companies have announced plans to comply with the rules.

On Oct. 8, the FCA added 143 entities to its rather lengthy “warning list”, including leading exchanges like KuCoin. The regulator stated that customers should “avoid dealing” with the companies on the list.

Criminal charges

FCA crypto promotions lead Jayson Probin suggested that entities not complying with the rules could face criminal charges. He posted on LinkedIn:

We will take robust action against persons illegally promoting to UK consumers. This may include, but it is not limited to, placing firms on our warning list, requesting take downs of websites, social media accounts, apps and all other promotions that are in breach, and enforcement action.