The newest draft of German Crowdfunding Regulation, released by the German Government on November 10, faces increasing criticism from the German Startup Community and the Crowdfunding Industry. While trying to protect small investors, a number of prohibitions will cause huge market distortions, reduce the security of the investors while increasing the bureaucratic burden for platforms.
The Government draft has now been submitted to the Parliament, which scheduled the vote on the law for April 2015. There are increasing signs that the Parliament would be willing to change the law and make it less prohibitive for crowdfunding; however, a crowdfunding-friendly law is unlikely until the next election in 2017.
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