The startup killer: Ledger CTO says the EU's crushing compliance costs are choking Web3 innovation

FinanceShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailThe startup killer: Ledger CTO says the EU's crushing compliance costs are choking Web3 innovationIndustry insiders warn that MiCA's steep financial barriers are choking early-stage innovation.By Olivier Acuna|Edited by Jamie Crawley Jun 8, 2026, 3:38 p.m. 3 min readMake preferred on What to know: 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.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.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. Under the framework, crypto companies face strict tiered minimum capital requirements. The costs range from 50,000 euros ($58,000) for advisory services to 150,000 ($174,000) just to operate a trading platform, on top millions of euros in mandatory legal auditing, insurance, and continuous compliance infrastructure.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 th…

The startup killer: Ledger CTO says the EU's crushing compliance costs are choking Web3 innovation

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