Crypto: The French Parliament Takes Steps to Regulate NFT Games

A few months ago, French lawmakers introduced the SREN bill aimed at securing the digital space in France. This regulatory initiative, also known as the Sorare law, proposed, among other things, the adoption of a legal framework applicable to games based on non-fungible tokens (NFTs) and cryptocurrencies. Now, it’s a reality.

French lawmakers have adopted the Sorare law!

On Wednesday, October 18th, the French National Assembly voted in favor of the Sorare law. This development marks the first step towards establishing a regulatory framework for games involving NFTs and crypto-based monetization models.

The decision to adopt this legislation was made within the broader law regulating the digital space, known as SREN, during a session of the 561 members of the assembly who cast their votes.

The approval of this bill is a significant victory for the French crypto gaming industry. Indeed, an overwhelming majority of 437 parliamentarians supported the regulatory initiative, with only 77 deputies opposing it.

The bill still needs to go before the Constitutional Council for constitutional control. Nonetheless, it represents a major step towards regulatory clarity in a rapidly growing gaming sector.

An Innovative Law?

For observers, the Sorare law is particularly game-changing for the ecosystem of games with monetizable digital assets. This is because it seeks to strike a balance between the innovation of French startups and the protection of user interests.

This legislation appears to act as a barrier against fraudulent activities that have marked this sector in recent years. This is what Karima Lachgar, CEO and Head of Legal and Regulatory Strategy at Olky Wallet, explained.

“The SREN can help legitimize the rapidly growing sector that has suffered from scams in recent years,” said the executive following the adoption of this regulation.

According to Lachgar, the National Gaming Authority (ANJ) will be responsible for compliance oversight, including requiring users to disclose their identities when withdrawing game winnings. Of course, the bill still needs to pass the constitutional control stage. Some deputies are still hoping to block it at this point.