Regulations like this are great and I applaud them. But they do harm innovation, because often the cost to become compliant with such new regulations is fixed.

Regulations like this are great and I applaud them. But they do harm innovation, because often the cost to become compliant with such new regulations is fixed. So the cost for a large corporation to be compliant is roughly similar to the cost of a startup to be compliant. This makes it comparatively harder for startups to get going and thereby gives large companies an unfair advantage. This stifles competition and innovation. We are seeing this first-hand with our startup in the EU investment space. The costs to be compliant with the various regulations (MiFID, AML, etc...) are mostly fixed, so they're a lot harder for small firms to implement such as ourselves than for large firms. That's also why a lot of smaller firms are merging into larger firms. As a solution, there should be relaxed regulations for startups. They would have to be fully compliant only once they reach a certain scale.