From Hacker News:
I skimmed through that law draft. Translation: They want you to face jail, if you provide an "internet based service", which "accessibility is restricted due to specific, technical precautionary measures", and which "purpose is to allow or encourage specific illegal actions".
They refer in particular to the Tor network and its abuse by serious crime, but how I read this law, you could apply it for all kind of things. For instance if somebody runs an encrypted IRC channel or email service. This is yet another attack on freedom in Germany thanks to the Christian Democratic Union.