A Pioneering Step in NFT Gaming Regulation

A Pioneering Step in NFT Gaming Regulation

23/10/2023
|
Categories: News |
Published by: BTCGOSU |
Last updated: 23/10/2023France Crypto Gambling

France’s National Assembly recently achieved a groundbreaking milestone with the approval of the JONUM regime, also known as the Sorare law. This legislation establishes a comprehensive regulatory framework for video games utilizing NFTs (Non-Fungible Tokens) and cryptocurrency-based monetization models. With 437 members in favor and only 77 opposed, the approval of this legislation marks a decisive victory for the emerging NFT gaming sector.

Balancing Innovation and User Protection

The JONUM regime, an acronym for “games with monetizable digital objects,” strives to strike a delicate balance. It encourages innovation among French startups while ensuring the protection of users. Unlike traditional gambling or video games, this legislation formally defines JONUM in legal terms, facilitating a tailored regulatory approach specific to crypto games.

Evading the Gambling Label

Previously, French authorities raised concerns about assets in crypto games meeting criteria defining gambling, including public offering, financial stake, and the presence of chance-based mechanisms. This potential classification as gambling activities could lead to higher tax obligations for widely played crypto games like Sorare and Stables. The JONUM regime aims to resolve these issues.

Constitutional Council Review and Potential Impact

While the proposed law is set for review by the Constitutional Council, it could represent a pivotal turning point for companies harnessing blockchain technology. However, given the novel nature of the crypto gaming vertical, experts anticipate that further amendments may be necessary.

Key Role of Regulatory Oversight

One of the main features of the JONUM regime is the regulatory oversight provided by France’s Autorité Nationale des Jeux (ANJ). While crypto games won’t be classified as gambling, players will need to disclose their age during account creation and verify their identity when withdrawing in-game earnings. Registration, though, will not necessitate identity verification.

The Influence of Influencers

The legislation also introduces crucial regulations concerning the promotion of Web3 games through influencers. It places restrictions on influencers who promote these games on platforms that cannot exclude minors, safeguarding the integrity of promotional efforts on platforms like YouTube.

Mixed Reactions in the Industry

While the JONUM regime has been praised for its positive impact on the budding crypto-gaming sector, it has encountered criticism from established casino operators. Some argue that the legislation grants preferential treatment to crypto games, raising concerns about potential illegal gambling activities.

In an earlier development, French senators considered permitting licensed cryptocurrency firms to compensate social media influencers for online advertising. This proposal contrasted with the stricter stance taken by the National Assembly, which aimed to effectively ban crypto ads by social media stars unless the companies they promote are licensed by the French Financial Markets Authority.

Conclusion

In summary, the JONUM regime represents a significant leap forward in the regulation of NFT-based games in France. It not only defines the legal landscape for these innovative games but also acknowledges the growing importance of influencers in their promotion.

As the crypto gaming industry continues to evolve, the JONUM regime sets the stage for its responsible growth and development.

Share:

X

Relevant news

Victoria Wild West Slot

Victoria Wild West Slot By TrueLab Studios Introduces NFT Integration

In a groundbreaking move that is set to revolutionize the gaming industry, Victoria Wild West,…

read more +
Wall Street Memes Casino

Wall Street Memes Casino: Where Memecoin Meets Decentralized Gambling

In the fast-paced world of cryptocurrency, the $WSM token, associated with the meme coin crypto…

read more +
Drake Logan Paul Bet

Drake’s $850,000 Bet Backfires: Logan Paul Wins, but Not by Knockout

The Canadian Music Icon’s Risky Wager on Logan Paul’s Victory In a high-stakes gamble on…

read more +
Casino

BigWins Casino Makes a Grand Debut After Overcoming Initial Hiccups

Cryptocurrency gambling is gaining momentum, with online casinos increasingly embracing digital currencies. Among the latest…

read more +
TG.Casino

TG.Casino Launches $TGC Crypto Token and 25% Cashback

In a game-changing move, TG.Casino, the Telegram-based crypto casino, has recently unveiled the $TGC token,…

read more +
Dexsport

Betting on Esports: Dexsport’s TI2023 Contest

Dexsport, a Web3 betting platform, has set the stage for a thrilling esports showdown with…

read more +

Author: Tyler Cooper