Marinade Finance started to block customers belonging to the UK’s jurisdiction.
Marinade Finance is the largest defi protocol on the Solana network, a highly scalable blockchain network, thanks to its unique layer-2 scaling protocol Proof-of-history (PoH). This Defi protocol is responsible for most of the total value locked (TVL) on the Solana blockchain, with $248 million spread across native and liquid stacking products. In short Marinade Finance contributes more than 70% of TVL for the Solana network.
As per reports, Marinade Finance started to block all those users who are using this protocol from the UK or using UK IP identity-based devices.
Blocked users are landing on a warning message webpage where this Solana Defi protocol mentioned that users are not allowed to access the platform and also the existing users can withdraw their liquidity funds, claim delayed tickets, or delay unstake via SDK.
Also, Solana’s largest defi exchange Orca Finance added the UK to its geo-block list.
These restrictions by the Solana Defi protocols came probably because of the UK’s Financial Conduct Authority’s (FCA) regulatory actions against the unregistered crypto services to protect citizens.
Following FCA’s new rules & laws, centralized crypto firms like Bybit and Paypal withdrew their services from the UK’s jurisdiction, while top-ranked crypto exchange Binance temporarily suspended new user registration.
The majority of the media reports confirmed that people from any jurisdiction can access any Defi protocols despite blocking efforts (by governments & crypto firms) with the help of Virtual Private Network (VPN) services which are available free to use.
In the present time, the majority of the Defi protocols don’t require Know-Your-Customer (KYC) and this allows people to access these platforms with the help of the internet & mobile.
The latest development activities by the leading Defi crypto exchanges showed a very big hint that the future of the Defi sector will mandate KYC verification for every customer to prohibit the bad actors who use cryptocurrencies for their suspicious & illegal activities.
Read also: WSJ used fake figures to defame the crypto industry: Hamas & Crypto