French Parliament Takes Steps To Regulate NFT Games

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).