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On 18 October 2023, the French National Assembly voted in favour
of a law aiming to secure and regulate the digital
space (“Loi visant visant à sécuriser et
réguler l’espace numérique” or SREN),
otherwise called the “Sorare Act.” This new development
marks a first step towards the establishment of a regulatory
framework dedicated to games integrating non-fungible tokens (NFTs)
and monetisation models based on digital assets.
These new provisions are aimed at the creation of a new category
of games under French law called games with monetisable digital
objects (“jeux à objets numériques
monétisables” or JONUM). This new regime will enter
into force ‘on an experimental basis and for a period of three
years’ from the promulgation of the law and will authorise Web3
games with monetisable digital objects (including NFTs).
The Sorare Act defines JONUMs as “game elements, which only
confer on players one or more rights associated with the game, and
which may be transferred, directly or indirectly, for consideration
to third parties,” while excluding digital assets covered by
2° of Article L. 54-10-1 of the French Monetary and
Financial Code.
France is one the first jurisdictions in the world to create a
specific regime for companies using NFTs as part of their games and
the objective is to provide certainty to the industry.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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