The Sorare Law: France Introduces Regulatory Framework for NFTs and Crypto Games
On Tuesday, the French National Assembly passed the Sorare law, which establishes the first dedicated regulatory framework for video games that utilize NFTs and crypto-powered monetization schemes. The law was voted on as part of the broader Digital Space Regulation Law (SREN) and received majority support from 437 out of 561 members. The legislation, known as the “Jonum regime,” aims to promote innovation among French startups while ensuring user protection.
This law is significant as it provides a legal definition for Jonum, paving the way for a potential new regulatory framework specifically tailored to crypto games. Karima Lachgar, CEO of Olky Wallet, believes that this legislation could legitimize the fast-growing sector and address previous issues with scams.
However, the text must now undergo examination by the Constitutional Council, which has the authority to review and potentially reject it. Some deputies are still hoping for its rejection, arguing that it gives preferential treatment to crypto games over online casinos.
Implications for the French Web3 Gaming Sector
If enacted, the Jonum regime would be a positive development for the local crypto-gaming industry. Previously, French regulators considered crypto games like Sorare as a form of gambling due to their characteristics. This classification could have resulted in heavier tax burdens for these businesses.
The text of the law designates the Autorité Nationale des Jeux (ANJ), the French National Gambling authority, as responsible for overseeing compliance. Users will be required to report their age when creating an account and verify their identity when withdrawing in-game earnings. However, no identity verification will be necessary during registration.
The Jonum regime also includes measures that impact influencer marketing for Web3 games. It prohibits the use of influencers for promotional activities on platforms that cannot exclude minors. Social media platforms like YouTube may not be affected by this restriction.
Hot Take: A Step Forward for Crypto Gaming in France
The passing of the Sorare law marks a significant milestone in the regulation of NFTs and crypto games in France. By introducing a dedicated framework, the legislation aims to balance innovation and user protection. If approved, this regulatory environment could help legitimize the sector and provide clarity for startups operating in the crypto gaming space. However, opposition to the law remains, with concerns about preferential treatment for crypto games over online casinos. The fate of the Jonum regime now lies in the hands of the Constitutional Council, which will determine its final outcome.
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