Marinade Finance, the leading decentralized finance (DeFi) protocol focused on Solana, took an important step today. The move is causing a stir in the cryptocurrency market. Accordingly, the protocol implemented geo-restrictions to prevent access for users located in the United Kingdom. This decision stems from “compliance concerns” arising from Financial Conduct Authority (FCA) regulations.
Surprising move from Solana focused platform
Solana-focused Marinade Finance now displays a warning message on its landing page for UK-based users. However, users may encounter limitations. On the other hand, it clarifies that they can perform actions such as withdrawing liquidity, claiming overdue tickets, or delaying staking through the platform’s SDK.
Solana-focused Marinade Finance stands out with $248 million distributed across local and liquid staking products. Accordingly, Solana makes a significant contribution to the total value locked (TVL) on the Blockchain. As reported by DefiLlama, the total amount of assets locked across the entire Solana network is approximately $350 million.
Return status
Solana-focused Marinade Finance currently provides 8.15% annualized returns for local staking and 7.7% for liquid staking. Local-based staking was introduced earlier this year. On the other hand, it provided users with the opportunity to earn rewards through their participation in the network. This move is not exclusive to Marinade Finance. Additionally, Solana’s largest decentralized exchange, Orca Finance, has also imposed geo-restrictions on users in the UK. The restrictions are seen as a response to the FCA’s newly introduced rules limiting the promotion of crypto-related products or services.
The FCA’s regulatory actions have had ripple effects on the crypto industry, such as in the case of Solana. It has also caused some centralized crypto businesses such as Bybit and Paypal to withdraw from the UK market. On the other hand, Binance has temporarily suspended new registrations from the UK following regulatory measures from the FCA. The impact became widespread, with Luno blocking certain customers from investing in crypto.
Geographical restrictions attract attention
Geographical restrictions attract attention, as in the example of the Altcoin Solana-focused protocol. On the other hand, decentralized protocols, which generally operate without the need for extensive know-your-customer (KYC) checks, are relatively rare in the field. The FCA’s regulatory stance is forcing businesses to adapt. It also reveals the complexity of reconciling traditional financial regulations with the emerging decentralized finance environment.
When we look at Kriptokoin.com, the move of the Solana-focused protocol will limit users in the UK. This situation indicates a risky situation for cryptocurrency investors in the country. Because it indicates that they will no longer be able to benefit from staking returns.
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