Solana-based decentralized finance (DeFi) protocol Marinade Finance has blocked users from the United Kingdom in accordance with new Financial Conduct Authority (FCA) regulations.
CryptoSlate tried to access the website from a UK IP address and received the following response:
Access to this site is not available in the United Kingdom due to compliance issues relating to rules and regulations issued by UK Finance [sic] Conduct Authority. Users can withdraw liquidity, claim delayed tickets or defer shutdown via our SDK…”
Marinade is a staking solution designed for the Solana network. The protocol has approximately 75,000 users, with the total value of assets locked on it at $241 million. This makes it the largest DeFi protocol on Solana, contributing almost 70% of the total value of assets locked on the blockchain network, according to data from DeFillama.
FCA rules prompt action from crypto companies
The FCA introduced new regulations earlier this year that handle the promotion of crypto products in the region. The financial regulator had explicitly promised strict enforcement, accompanied by the threat of penalties that could include up to two years in prison, unlimited fines or a combination of both. These regulations officially came into effect on October 8.
Consequently, several crypto companies have taken steps to adapt to these rules or announce their departure from the country.
Crypto companies like Bybit and PayPal have exited the market, while OKX has restructured its operations to comply with the new regulations. On the other hand, other major crypto companies, Binance, PayPal and ByBit, have chosen to leave the jurisdiction, citing the new regulations.
In addition to these measures, the regulator has published a list of more than 100 unauthorized crypto companies operating within its jurisdiction, including prominent crypto exchanges such as HTX and KuCoin.