France gives NFT games a nod, which could lead to more blockchain-based gambling
The French National Assembly enacted the so-called Sorare law on Tuesday, which is the country’s first regulation regarding NFTs video games and crypto-powered monetization strategies. The 561 members of the French National Assembly voted on the regulatory framework, part of the Digital Space Regulation Law–or SREN–i, with 437 in favor and 77 against.
Known as the “Jonum regime,” which represents games with monetized digital objects, the law aims to foster innovation among companies while guaranteeing user protection. The legislation defines Jonum as leading the way for regulation geared toward crypto games, separate from gambling and conventional video games.
“SREN may contribute to legitimize the sector, which is fast-growing and had suffered from scams the last few years,” said Karima Lachgar, CEO of Olky Wallet, in a statement to Decrypt. The Constitutional Council will now examine the law and has the power to reject it, which several lawmakers hope will happen.
Lachgar has implied that gambling platforms could move “to enter into the play-to-earn and Web3 sector like PMU” under the new rules if that takes place. Pari Mutuel Urbain is France’s state-run wagering system, which is already established in the crypto space through its Stables fantasy horse racing game.
While it’s still not finalized, the Jonum regime is believed to positively affect the local crypto-gaming sector. 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 stake and the presence of a mechanism involving chance.”
Popular crypto games, like Stables and Sorare, were previously at risk of being categorized as a form of gambling, which must pay considerably higher taxes.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
