In 2026, German businesses will enter a period of sweeping regulatory reform. The changes will affect corporate reporting, digital security, environmental standards, artificial intelligence, the financial sector and cross-border operations. For foreign investors, this means not only rising compliance costs but also increased personal liability for executives. In practice, this applies both to companies registering in Germany and to entities operating in the digital assets sector, including authorised crypto companies in Germany. Experts at Eternity Law International are already seeing an increase in enquiries from businesses that need to adapt their internal processes to comply with new EU and German regulations.
| Change | What it means for business |
| AI Act | Control over AI use and new documentation demands |
| NIS2 | More demanding demands for digital security and cyber risk protection |
| CSRD | Expanded ESG reporting demands |
| AMLA | Tougher financial compliance control |
| CBAM | Additional costs for import-oriented businesses |
The AI Act and the regulation of artificial intelligence
One of the key issues for 2026 remains the implementation of the AI Act’s demands. Despite discussions about potentially relaxing certain provisions as part of the Omnibus Initiative, the law’s basic framework remains in place. Beginning in August 2026, businesses that operate AI solutions classified as high risk must introduce extensive oversight procedures. These obligations include clear explanation of automated decision-making systems, detailed recordkeeping, continuous internal supervision, and effective threat prevention measures.
The regulation covers financial institutions such as banks and insurers, as well as human resources platforms, medical service providers, logistics operators, and organisations offering digital technologies and services. The issue is particularly sensitive for the fintech and crypto sectors. Eternity Law International assists clients who require an audit of their AI infrastructure, the drafting of internal policies and a legal risk assessment ahead of regulatory inspections.
Tighter cybersecurity requirements
At the same time, cybersecurity requirements are becoming stricter. In Germany, the implementation of the NIS2 Directive is coming into force, and the practical application of certain provisions of the Cyber Resilience Act is also beginning. Organisations are required to establish an IT risk management system, promptly report cyber incidents and document measures to protect digital infrastructure. The list of organisations subject to regulation is expanding significantly.
While earlier rules mostly targeted operators of essential infrastructure, the regulatory scope has now broadened to include cloud service providers, data center operators, e-commerce platforms, software-as-a-service providers, and IT outsourcing firms. Breaches of the new rules may result not only in fines but also in restrictions on business activities within the EU.
A separate area of change relates to ESG regulation and long-term environmentally and socially responsible growth. In 2026, Germany is continuing to implement the CSRD, although scope of organisation subject to demands has been narrowed following the adoption of the Omnibus Package. The obligation to submit extended non-financial reporting now applies in most cases to large companies with over 1,000 employees and significant turnover. However, even businesses that do not formally fall under the CSRD are facing indirect pressure from banks, investors and counterparties.
Restrictions on environmental claims and green advertising
In 2026, regulation and verification of eco-related claims and sustainability-focused advertising will become much stricter and more closely enforced. Following the rollout of the Empowering Consumers for the Green Transition Directive, companies will be permitted to make green or environmental statements only if they can substantiate them with reliable, checkable evidence. Vague phrases such as ‘green production’, ‘environmental friendliness’ or ‘carbon neutrality’ will effectively be banned unless backed up by certification or an official assessment methodology. For businesses, this means an increase in the number of consumer complaints and competitive claims. Particular risks arise for e-commerce projects, consumer goods manufacturers and international brands.
Further requirements are being added under the CBAM. Starting in January 2026, the mechanism will move into its full operational stage. Organisations bringing goods into the EU must buy certificates that correspond to the amount of carbon emissions released during the manufacturing process in non-EU countries. This applies to the metallurgy, chemical, cement and fertiliser sectors, as well as a number of other industries. Despite a partial relaxation of the requirements under the second Omnibus package, the financial burden on import-oriented businesses is increasing significantly.
Changes to supply chain regulations
Significant changes are also taking place in the regulation of supply chains. The German Supply Chain Due Diligence Act remains formally in force until the final implementation of the CSDDD, although the reporting obligation has been partially lifted. However, this does not mean that oversight has been abandoned. Organisations are still required to conduct risk assessments, analyse suppliers and prevent human rights violations. Moreover, the European CSDDD will, in the long term, expand the list of obligations and increase management’s accountability.
In practice, businesses often find themselves needing to conduct thorough due diligence on international partners, particularly in Asia, Africa and Latin America. Eternity Law International assists clients with due diligence, risk assessment and the preparation of internal compliance documentation for the supply chain.
AML controls and new demands for financial sector
In 2026, regulators are focusing heavily on financial sector and AML controls. Against the backdrop of the launch of the AMLA, supervision of anti-money laundering procedures is being stepped up. Major financial institutions are already undergoing pilot audits of their risk assessment models and the quality of their customer data. Particular attention is being paid to crypto projects, payment systems and cross-border transactions. Mistakes in customer verification processes, inaccurate disclosures, or insufficient clarity about the source of assets may lead to penalties and regulatory sanctions. Organisation executives and compliance managers are also facing a growing threat of individual accountability.
The new rules also affect the consumer services market. Germany is required to adopt the revised Consumer Credit Directive into national legislation. Services such as ‘Buy Now Pay Later’, microloans and short-term loans will be subject to regulation. For fintech organisations, this means stricter demands regarding disclosure of information, scoring models and the assessment of customers’ creditworthiness. Breaches of the rules could lead to licence restrictions and legal claims from consumers. For international businesses, this means increased costs for legal protection and claims management. Eternity Law International is involved in projects aimed at structuring manufacturers’ European presence and mitigating regulatory risks.
New environmental demands for packaging and disposal
In 2026, German organisations will also face stricter demands regarding packaging, batteries and product disposal. The updated European packaging rules apply to producers, importers, retail businesses, and online trading platforms. Companies are required to review their processes for labelling, recycling and accounting for packaging materials. For the e-commerce sector, this means an additional administrative burden and the need to integrate new procedures into their operations.
Eternity Law International works with international companies, investors, fintech projects and corporate groups requiring legal support in Germany and the EU. The firm’s specialists assist with corporate restructuring and preparing businesses for the demands of the AI Act, CSRD, AMLA, NIS2 and other changes in European regulation. If you are interested in setting up a business in Germany, obtaining licences, conducting a legal audit or establishing a compliance framework in line with the 2026 requirements, you can contact Eternity Law International for professional support.
FAQ
What types of businesses must comply with the new obligations introduced by the AI Act?
Organisations using high-risk artificial intelligence systems are subject to regulation. These include banks, fintech companies, HR platforms, healthcare providers, insurance organisations and digital solution providers. In certain cases, demands also apply to international groups operating through German subsidiaries.
What are the consequences for businesses that fail to comply with the new EU demand?
The consequences depend on the specific breach. These may include fines, restrictions on business activities, licensing issues, the blocking of certain transactions, and claims from regulators. In the financial sector, there is a growing risk of personal liability for directors and compliance officers.
What impact will the upcoming legal changes in Germany have on businesses operating in the fintech and cryptocurrency industries?
The digital finance and virtual asset industries will face more demanding identity verification rules, deeper checks into where capital comes from, and tighter monitoring of international money transfers. Moreover, firms will need to follow stricter standards for digital protection systems and strengthen their procedures for tracking and managing operational threats. This applies in particular to firms dealing with digital assets and payment solutions.
