Europe was supposed to be the model for smart crypto regulation. Instead, it’s becoming a cautionary tale. The Markets in Crypto-Assets regulation — MiCA — is driving startups out of the EU and concentrating power among a handful of well-funded incumbents.
The core problem is cost. Compliance under MiCA can run upwards of €150,000, a price tag that’s manageable for established firms but devastating for early-stage startups trying to get off the ground. The result is an exodus: founders are relocating to friendlier jurisdictions in the Middle East, Asia, and even the US, where the regulatory landscape is still taking shape but at least doesn’t come with an upfront six-figure bill.
What’s left behind is a market increasingly dominated by big players who can afford the paperwork. Competition suffers. Innovation suffers. And the very startups that were supposed to benefit from regulatory clarity are the ones paying the highest price.
Source: Journal du Coin
