Worried that German companies are falling behind in the digital age, BaFin is anxious to promote innovation and start-ups.
The lawmakers softened the draft legislation by adding exemptions for online donation platforms and by loosening plans for a strict ban on Internet advertising for crowdfunding projects.
Consumer protection watchdogs have warned that the crowdfunding industry, which raises a billion euros a year globally in alternative financing, falls between the cracks of existing regulation.
Since Germany crowdfunding software platforms can skirt requirements for businesses to publish a prospectus, investors often have little information and face high failure rates.
The new law excludes crowdfunding platforms from the duty to publish a detailed and therefore costly prospectus as long as the project volume does not exceed 2.5 million euros. That is higher than the originally planned threshold of 1 million euros.
In addition, investments by individuals may not exceed 1,000 euros, thereby reducing potential losses. Individuals may invest up to 10,000 euros if they can provide proof of assets or income of a level deemed sufficient to bear the risk of loss.
Review the current Germany Crowdfunding software discussion:
Here are just a few features for Germany crowdfunding software included in the CrowdForce platform software:
• Currency options include $, £, € with more custom options available
• Localization and language packs available
• Complete and simple document signing and management
• Easy offline payments, custom payment solutions available
• Plug in your local escrow account
• Plug in your broker services for accredited investments
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