When you hear about any decentralized finance (DeFi) protocol, you get positive vibes that you can use the protocol from anywhere in the world. You usually do not expect any sort of restriction or ban on the Decentralized Finance protocol. As the name says it's decentralized, so it is supposed to be open to everyone.
The popular and largest Decentralized Finance (DeFi) protocol on Solona Marinade Finance started blocking users from the United Kingdom. Not only Marinade Finance but also Orca Finance on Solona blockchain put restrictions on UK users.
Users face problems accessing Marinade Finance and Orca Finance. They see a message that the site is not available in the UK due to the latest rules and regulations of the Financial Conduct Authority (FCA). It is also mentioned in the message that existing users can withdraw liquidity, claim delayed tickets, and manage it via the software development kit (SDK).
Marinade Finance's total value locked (TVL) is more than 5 million. This DeFi protocol has over 75,000 users now. This is not a good sign when users in a specific region go through restrictions and bans on the Decentralized Finance (DeFi) protocol. It questions the main theme of how decentralized the DeFi protocol is.
There are new guidelines from the U.K. Financial Conduct Authority (FCA) about promoting fair, clean, and transparent advertisements of crypto-based services. It has to give warnings that people can understand while making any promotion about crypto. It has to be honest, clear, and fair. Crypto companies must follow the FCA's guidelines to operate their business.
The most popular centralized crypto exchange Binance stopped accepting users from the UK. It is temporary and the exchange is looking for a new FCA-authorised approver. PayPal also halted cryptocurrency transactions for UK users. Crypto companies have to adapt to new guidelines and comply with new rules and regulations.
Some countries go hard on crypto and they do everything to make it regulatory compliance. If any country goes to the extreme level and drives crypto companies away from the country, that will be a big mistake. Most countries will accept crypto. People want crypto because they see what crypto can bring to their lives.
Putting restrictions and unfavorable conditions can create challenging situations, but that's temporary. Crypto will evolve and move forward at its own speed. The future will be exciting for crypto. So are you ready to be a part of this adventurous journey?
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It sucks to hear that they are blocking people from the UK, but what will happen to people who want to take out their funds? I do not support these things at all because Defi platforms should be able to avoid this.
I also think that. There should not be any sort of restrictions on DeFi. Let's see how DeFi moves forward avoiding regulatory scrutiny.