Germany: Crowdfunding Industry Criticizes Challenging Regulatory Approach by German Policymakers in Advance of Pan-European Rules
The
German Bundestag recently reviewed legislation that will implement the
European Crowdfunding Service Provider Regime Regulation (ECSP). According to industry participants, the German rules may fundamentally undermine online capital formation in the country just as the European Union is poised to boost the industry with pan-European rules that allow for issuers to raise up to €5 million across all EU member states.
European Commission had come to terms regarding pan-European rules for online capital formation. Industry advocates such as the
European Crowdfunding Network (ECN) had worked with European policymakers for years seeking to harmonize crowdfunding regulations that have been peppered with bespoke national laws making it challenging for issuers to solicit investments across Europe.