On Tuesday, the French National Assembly passed the so-called Sorare law, introducing the first specific regulatory framework for video game eavesdropping. NFTs and crypto-powered monetization programs.
It was voted on as part of the broader Law on the Regulation of the Digital Space – or SREN – in the French National Assembly, with 561 members voting.
Among them, 437 members voted in favor of its adoption, while 77 members voted against.
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The text, also called the ‘Jonum regime’, which stands for games with digital objects that can be monetized, tries to strike a balance between promoting innovation among French startups and ensuring user protection.
For the first time in legal terms, this legislation defines Jonum, paving the way for a potential new regulatory framework specifically tailored to crypto games, separate from gambling and traditional video games.
“SREN can help legitimize the sector that is growing rapidly and has suffered from scams in recent years,” said Karima Lachgar, CEO and head of group legal and regulatory strategy at Olky Wallet. Declutter.
Now the text must be examined by the Constitutional Council, which has the power to review and possibly reject it – something several deputies are still hoping for.
According to reports from Lesson EchoesOpponents have pointed out that the law would give crypto games preferential treatment over online casinos.
If successful, Lachgar even suggested that gambling platforms could move “to the play-to-earn and Web3 sector like PMU” under the new law.
Pari Mutuel Urbain is the state-controlled gambling system. It has already entered the crypto space through its fantasy horse racing game Stables.
A breath of fresh air for the French Web3 gaming sector
While far from final, the Jonum regime would be a positive development for the local crypto gaming industry.
French regulators had previously said that the assets used in crypto games meet “three of the four criteria for defining a game of chance and gambling: public offering, financial commitment and the presence of a mechanism involving gambling.”
As a result, popular crypto games like Sorare, and others like Stables, were at risk of being classified as a form of gambling. The latter types of companies are confronted with a much heavier tax burden.
However, the text states that it is the Autorité Nationale des Jeux (ANJ), France’s national gambling authority, that will monitor compliance.
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That means users must provide their age when creating an account for a crypto game and verify a player’s identity when withdrawing in-game earnings. Importantly, no identity verification is required upon registration.
The Jonum regime also includes measures affecting the promotion of Web3 games using influencers. Specifically, it prohibits the use of influencers for promotional activities on online platforms that cannot exclude minors.
This suggests that promotional efforts on many social media platforms, including YouTube, may remain unaffected.