Marinade Finance and Orca Finance Block UK Users Amid FCA Regulations
Overview
Marinade Finance, a prominent staking protocol on the Solana network, along with Orca Finance, has blocked UK users in response to the new Financial Conduct Authority (FCA) regulations.
Key Points
- Staking Rates: Marinade Finance offers an annual interest rate of 8.15% for native staking and 7.7% for liquid staking.
Impact on Solana's TVL: Marinade Finance contributes significantly to Solana's total value locked (TVL), with $248 million spread across various staking products. The total TVL of the Solana ecosystem stands at approximately $350 million.
TVL of leading projects on Solana as of October 24, 2023
Compliance with FCA: To comply with the FCA's new regulations, both Marinade Finance and Orca Finance have decided to restrict access to their platforms for users in the United Kingdom.
Access block notice for UK users on Marinade Finance
Orca Finance and FCA Regulations
Orca Finance: The largest DEX on Solana, Orca Finance, has also restricted UK users to comply with the new FCA framework, which limits the marketing of crypto-related products and services.
UK Users Restricted From Solana
— Robert D. Knight (@RobertDKnight) October 23, 2023
Solana sites including Orca Finance (DEX) and Marinade Finance (Staking) lock out U.K. customers in response to regulatory concerns.
A statement released on both sites reads, “Access to this site is unavailable in the United Kingdom due to… pic.twitter.com/86avUpogFj
Orca Finance restricts UK users
FCA's Stance on Crypto Regulations
- List of Unauthorized Crypto Companies: The FCA has also released a list of over 100 unauthorized crypto companies operating in the UK, including HTX (formerly Huobi) and KuCoin. Many crypto companies have either adapted to the new regulations or exited the UK market.
New Regulatory Framework: The FCA introduced a new regulatory framework that came into effect on October 8, 2023, to oversee the promotion of crypto products within the country. This includes strict oversight and potential criminal penalties of up to 2 years in prison for non-compliance.
FCA's new crypto regulations
Responses from Crypto Platforms
- Bybit and PayPal: These platforms have already restricted UK users, while Binance has temporarily halted services to UK residents since October 16.
- OKX: This platform has chosen to restructure its operations to comply with the new regulations.
Conclusion
The recent actions by Marinade Finance and Orca Finance highlight the increasing regulatory pressures faced by crypto platforms operating in the UK. As the FCA continues to enforce its new regulations, more decentralized protocols may also need to adjust their operations or restrict access to comply with local laws.
