The crowdfunding regulation in Germany - on the path to self-isolation?

Abstract

This Chapter analyses the prospects of implementing the European Crowdfunding Service Provider Regulation (ECSPR) in Germany. The analysis starts by providing an overview of development of the German crowdfunding market driven by several regulatory changes within the national regime. The discussion then turns to the comparison of the existing rules and the ECSPR, with a particular focus on business models which will remain outside the scope of the European regime. One of the striking facts is that prevalent business models of platforms will remain subject to national rules, limiting the ability of platforms to passport their activities to other countries. The Chapter finally discusses the ECSPR Implementation Law and identifies some of the potentially favourable changes in the future, such as the regime for the liability for the content of the KIIS, which makes the ECSPR less attractive for issuers from Germany. The authors argue that the goal of the European legislator to create a pan-European crowdfunding market is undermined by the ECSPR implementation in Germany and discuss avenues to improve the German crowdfunding framework in the ECSPR context.