The chief technology officer of Ledger, the French hardware wallet manufacturer, has publicly criticized the European Union's Markets in Crypto-Assets (MiCA) regulation, warning that its high compliance costs are actively hindering innovation in the Web3 sector. In an interview with CoinDesk, the CTO argued that the financial burden imposed by the regulatory framework creates a significant barrier for early-stage companies, ultimately slowing technological progress and favoring established financial institutions.
According to the Ledger executive, the costs associated with MiCA compliance extend far beyond simple legal fees. Startups in the crypto space are now forced to allocate substantial portions of their limited capital to advisory services, operational overhead, legal and audit fees, insurance premiums, and infrastructure development. “The costs are so high that they effectively lock out the very companies that are building the future of decentralized finance,” he stated.
A key concern raised is that MiCA’s compliance structure inherently favors large banks, asset managers, and established fintech firms that can absorb regulatory costs, while startups often operate on thin margins. This dynamic could lead to a consolidation of power within the crypto industry, undermining the decentralized ethos of Web3. The critique echoes broader industry fears that the one-size-fits-all regulatory approach fails to distinguish between small-scale innovators and large systemic players.
For the EU, which has positioned itself as a global leader in digital asset regulation, the stakes are high. If compliance costs drive startups to relocate to more favorable jurisdictions like the UAE, Singapore, or certain U.S. states, the region risks losing its competitive edge in the Web3 space. The CTO’s comments emerge at a time when the crypto market is showing signs of recovery, with renewed interest in decentralized applications and blockchain infrastructure, making the need for a balanced regulatory approach more urgent.
