Ledger CTO Says MiCA Compliance Costs Are Stifling Web3 Innovation
Summary
- Ledger’s CTO said the high cost of complying with the EU’s crypto regulation MiCA is stifling innovation in the Web3 industry.
- He said legal advisory fees, operating expenses, audit costs, insurance premiums and infrastructure spending tied to compliance are creating a steep financial barrier for early-stage startups.
- The market is watching whether Europe’s crypto industry will be reshaped around large financial institutions and well-capitalized companies after MiCA takes effect.
Forecast Trend Report by Period
The chief technology officer of hardware wallet maker Ledger said the high cost of complying with the European Union’s Markets in Crypto-Assets regulation, or MiCA, is stifling innovation in the Web3 industry.
CoinDesk reported on June 8 that Ledger’s CTO said in an interview that compliance costs have become a steep financial barrier for early-stage companies, hindering technological innovation.
He said startups are struggling to absorb the costs tied to compliance, including legal advisory fees, operating expenses, audit costs, insurance premiums and infrastructure spending.
The current regulatory environment is ultimately favoring large financial institutions and companies with deep capital reserves, he added.
The European Union plans to fully implement MiCA in July. Crypto-asset service providers, or CASPs, must obtain the relevant licenses to continue operating in the bloc.
In the industry, MiCA is seen as a framework that could strengthen investor protection and market transparency. But there are also concerns that excessive compliance costs could make it harder for small and midsize projects and startups to enter the market.
The market is watching whether MiCA’s rollout will reshape Europe’s crypto industry around larger players.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
