Marinade Finance, a leading decentralized finance (DeFi) protocol operating on the Solana blockchain, has blocked UK users due to compliance concerns over UK Financial Conduct Authority (FCA) regulations. This has caused the price of the Marinade (MNDE) token to surge by 22.54% today and hit a daily high of $0.07032.
The FCA’s Financial Promotions Regime has led to several crypto entities, including Marinade Finance, exiting the UK market. UK users were faced with a block page on October 23 when attempting to access Marinade Finance’s website, citing “compliance concerns relating to rules and regulations promulgated by the UK Finance Conduct Authority,” and restricting any further access.
However, Marinade Finance has provided an option for UK-based users to perform specific actions, such as withdrawing liquidity, claiming delayed tickets, and delaying unstake through the use of its software development kit (SDK).
Other prominent players, including Binance and PayPal, have also retracted their services from the UK due to regulatory challenges. This highlights the importance of regulatory compliance for DeFi protocols, and the need for transparency and fairness within the cryptocurrency industry.
Marinade Finance currently holds $241 million, accounting for 70% of all funds locked on the Solana blockchain. Despite Marinade Finance’s exit from the UK market, the price of Solana (SOL) has surged by 7.09% to trade at $31.78 today.
The cryptocurrency industry is likely to witness further adjustments aimed at fostering a transparent and compliant environment for crypto operations globally. OKX and MoonPay are examples of companies preparing to adhere to FCA’s regulations.