European Union · CoinDesk
The company killer: Ledger CTO confirms the EU's crushing compliance costs are choking Web3 innovation
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The European Union’s (EU) regulatory framework has redefined the competitive landscape of Web3, unintentionally shifting the advantage away from crypto startups, directly into the hands of legacy financial institutions, according to Charles Guillemet, chief technology officer (CTO) at wallet maker Ledger.
Key facts
- The costs range from 50,000 euros ($58,000) for advisory services to 150,000 ($174,000) to operate a trading platform, on top millions of euros in mandatory legal auditing, insurance, and continuous
- An impact assessment by the EU Commission on MiCA estimated that each white paper could cost issuers between $4,500 and $87,000, depending on the complexity of the regime and the amount of legal
- The team have around 200 to 250 engineers who are working at Ledger to build the technology
- The European Union’s (EU) regulatory framework has redefined the competitive landscape of Web3, unintentionally shifting the advantage away from crypto startups, directly into the hands of legacy
Summary
The European Union’s MiCA rules impose steep capital, legal and compliance costs that industry figures say effectively shut out smaller crypto startups while favoring large, well-funded financial institutions. Regulators argue that MiCA’s stringent requirements are necessary to protect consumers and build trust, even as traditional banks accelerate their move into blockchain and crypto services. As banks turn to specialized firms like Ledger for enterprise-grade custody and tokenization despite past security breaches, native crypto companies are increasingly powering the infrastructure of mainstream finance in Europe. While the EU's Markets in Crypto-Assets (MiCA) regulation was designed to establish a unified, secure market, industry insiders warn its steep financial barriers are choking early-stage innovation.