The problem is there is no association to set rules that issues driver licenses like FIA /CIK. That is where the power comes from. Want to race and progress from a club license to a National license to an International license, then you have to participate in sanctioned events that comply with official rules. I actually don’t recall there being “outlaw” races when I lived in Germany. In the USA, since any Tom, Dick or Harry can license, sanction, and run a series they can make their rules.
Not sure how all these series get their insurance, but if they had to comply with a set of rules and a set homologation, requiring an official driver’s license to participate to get their insurance, there would not be an issue.