Solana

Marinade

Orca

<h4>Regulation in crypto is coming. We can already see real-life situations develop. One of the latest samples occurred in the UK. Two big Solana <a href="https://www.altcoinbuzz.io/?s=decentralized+exchanges" target="_blank" rel="noopener">Dapps</a> blocked UK users.&nbsp;</h4> 
This happened because of “compliance concerns” over Financial Conduct Authority (FCA) regulations. It involved <a href="https://marinade.finance/" target="_blank" rel="noopener">Marinade Finance</a> and Orca Finance on Solana. So, let’s take a closer look at what actually happened. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 .<a href="https://twitter.com/solana?ref_src=twsrc%5Etfw">@solana</a>'s largest decentralized finance (DeFi) protocol, <a href="https://twitter.com/MarinadeFinance?ref_src=twsrc%5Etfw">@MarinadeFinance</a>, has blocked users in the United Kingdom from accessing the site due to "compliance concerns" over Financial Conduct Authority (FCA) regulations.<a href="https://t.co/3LYTbAKrfp">https://t.co/3LYTbAKrfp</a> <a href="https://t.co/kbDZS2fcmf">pic.twitter.com/kbDZS2fcmf</a> 
 — ICO Drops (@ICODrops) <a href="https://twitter.com/ICODrops/status/1716501668794114172?ref_src=twsrc%5Etfw">October 23, 2023</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
But first, let’s take a look at what is a decentralized application (dApp) 
<h5>What Is a Dapp?</h5> 
A Dapp is short for Decentralized Application. The idea is, that once they’re deployed, they keep running. It’s nearly impossible to take them down. Dapps are typically distributed. As a result, there’s no central or single point of failure. That’s because various nodes store data of a Dapp among them. So, if one node fails, the other unaffected remaining <a href="https://www.altcoinbuzz.io/?s=nodes" target="_blank" rel="noopener">nodes</a> keep running the network.&nbsp; 
However, that’s the theory. The reality is that almost all Dapps are being controlled by a person or a company. So, a Dapp only stores small pieces of data and stores them on a blockchain. For example, the data relates to asset ownership. However, the company or the person who created the Dapp runs the rest of the Dapp. 
Let’s take a look at a DEX (Decentralized Exchange). Yet, having the word decentralized in the name, doesn’t necessarily make it decentralized. Whether we like it or not, they also have centralized parts in them. For example, DEXes can use centralized servers. The following video shows how a Dapp works. 
<iframe title="What are dApps? (12 Decentralized Application Examples)" width="696" height="392" src="https://www.youtube.com/embed/oPIupbsVimc?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
Or let’s take a look at <a href="https://www.altcoinbuzz.io/category/nft/" target="_blank" rel="noopener">NFTs</a>. The token itself may be centralized. However, the company that made the NFT runs the marketplace, the data, or the image. Most NFT images are even stored off-chain, on centralized servers. 
So, not everything that shines is gold. We found out a few reasons why Dapps are not decentralized yet. Because, if they were, they would be 100% censorship-resistant. That’s why we need to take a closer look at what happened in the UK.&nbsp; 
<h5>Marinade Finance Blocked Users in the UK</h5> 
According to <a href="https://defillama.com/chain/Solana" target="_blank" rel="noopener">DeFiLlama</a>, Marinade Finance currently has the highest TVL on Solana. Their TVL is almost $273 million, and Solana’s total TVL is $385 million. So, Marinade’s share is quintessential. Marinade automates staking on Solana. It also offers liquid staking options.&nbsp; Their native staking annual yields are around 8.15%. 
For liquid staking, you can get another 7.7%. They play very well into the successful ‘Only Possible on Solana’ campaign. Now, in the UK, their landing page has a warning message. It restricts UK users to, 
<ul> 
 <li>Withdrawing liquidity.</li> 
 <li>Claim delayed tickets.</li> 
 <li>Delay unstaking via their SDK.</li> 
</ul> 
This is a direct result of changing crypto regulations in the UK. For example, the <a href="https://www.fca.org.uk/" target="_blank" rel="noopener">Financial Conduct Authority (FCA)</a> has implemented new rules. These are guidelines that should regulate promotional campaigns of crypto-based products and services. The FCA is looking for transparency and ultimately wants to protect consumers. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Access has been restricted in the UK due to compliance concerns relating to rules and regulations promulgated by the U.K. Finance Conduct Authority. 
 Users may withdraw liquidity, claim delayed tickets or delay unstake via our SDK. 
 Users can visit the community with questions… 
 — Marinade (@MarinadeFinance) <a href="https://twitter.com/MarinadeFinance/status/1716467396632838287?ref_src=twsrc%5Etfw">October 23, 2023</a>
</blockquote> 
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However, somehow these new rules have backfired. Within the crypto community, many projects have re-evaluated their UK business strategies. This resulted in firms withdrawing their services from the UK crypto market. For instance, PayPal and Bybit have already exited the UK market. Another sample is Binance, they don’t accept new customers on their UK platform.&nbsp; 
<h5>Orca Finance</h5> 
<a href="https://www.orca.so/" target="_blank" rel="noopener">Orca Finance</a> is another Solana-based project. It’s a DEX, and it ranks on spot #5 for Solana TVL. Its current TVL is $52 million. This platform geo-blocked UK users. It appears to be a response to the new FCA guidelines and rules. This brings us to geo restrictions and <a href="https://www.altcoinbuzz.io/category/defi/" target="_blank" rel="noopener">DeFi</a>. Let’s take a closer look at this. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Orca is proud to navigate uncharted waters on <a href="https://twitter.com/solana?ref_src=twsrc%5Etfw">@solana</a>, enabling unparalleled UX for trading, LPing, and building. 
 And this ship keeps on shipping – join <a href="https://twitter.com/rawfalafel?ref_src=twsrc%5Etfw">@rawfalafel</a> &amp; <a href="https://twitter.com/oritheorca?ref_src=twsrc%5Etfw">@oritheorca</a> for an exciting product reveal on the <a href="https://twitter.com/SolanaConf?ref_src=twsrc%5Etfw">@SolanaConf</a> main stage Nov 1st! <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f433.png" alt="🐳" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/hashtag/OnlyPossibleOnSolana?src=hash&amp;ref_src=twsrc%5Etfw">#OnlyPossibleOnSolana</a> <a href="https://t.co/9q0fj9kspz">https://t.co/9q0fj9kspz</a> 
 — Orca <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/2600.png" alt="☀" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@orca_so) <a href="https://twitter.com/orca_so/status/1715744808512487763?ref_src=twsrc%5Etfw">October 21, 2023</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
<h5>Geo-Blocking in DeFi</h5> 
Geo-blocking in DeFi is rather rare. For instance, in general, DeFi doesn’t require <a href="https://www.altcoinbuzz.io/?s=KYC" target="_blank" rel="noopener">KYC procedures</a>. So, to see that Marinade Finance and Orca Finance did this in the UK is peculiar. It’s also another sample of why Dapps are not decentralized.&nbsp; 
Developers, or their teams, start doing this. So, does this mean that in the future, we all need VPN services, so we can use our fave Dapps? It almost looks like it. However, many DeFi Dapps won’t allow VPN on their platforms. Once they detect a VPN, you can’t access the Dapp.&nbsp; 
This can be useful to fight Sybil’s attempts by airdrop hunters. But unfortunately, we may see restricted access to various Dapps. All pending on where you live, of course. So, unfortunately, this is by no means decentralized. 
On the other hand, we see many initiatives to get clear regulation on the table. Especially in Europe, we see governments and <a href="https://www.altcoinbuzz.io/?s=gems" target="_blank" rel="noopener">crypto projects</a> working together. 
<h5>Conclusion</h5> 
Two Solana protocols recently blocked their UK users from using their platforms. Regulation in crypto is underway, and this is a real-life sample. Both platforms cited “compliance concerns” over Financial Conduct Authority (FCA) regulations. 
<a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="wp-image-124236 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-300x37.jpg" alt="" width="689" height="85" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1068x132.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1.jpg 1197w" sizes="(max-width: 689px) 100vw, 689px"></a> 
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Solana Dapps Blocked in the UK

Altcoin Buzz

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