What would you do if you’re a signing device manufacturer and you have to comply to this?

https://www.consilium.europa.eu/en/press/press-releases/2023/05/16/digital-finance-council-adopts-new-rules-on-markets-in-crypto-assets-mica/

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Comply. Most people will. And nothing in that law mandates chances to your hardware wallet. You are still free to choose