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In a groundbreaking decision, the French National Assembly has approved the Jonum regime, also known as the Sorare Law, marking a pivotal moment for the crypto-powered video game industry in France. With 437 members in favor, this legislation is designed to navigate the delicate balance between encouraging innovation in French startups and safeguarding user interests within the realm of crypto games. Over the years, crypto games like Sorare and Stables have grappled with legal ambiguities, teetering on the edge of being labeled games of chance and gambling, a classification that could have led to substantial taxation. The Jonum regime, however, introduces a dedicated regulatory framework, aiming to legitimize a rapidly growing sector while addressing user protection concerns. It's a move that defines "Jonum" legally and offers tailored regulations, signifying a positive stride toward a clear legal structure for the crypto gaming industry. Yet, despite its overall support, the legislation faces potential roadblocks on its journey to becoming law, as it awaits review by the Constitutional Council, highlighting the ongoing debates surrounding the future of crypto gaming in France and its potential impact on the broader gaming and gambling industries. The French National Assembly's recent approval of the Jonum regime, also referred to as the Sorare Law, marks a significant development in the rapidly evolving world of crypto-powered video games. The legislation, passed with the support of 437 members, seeks to create a legal framework that strikes a balance between promoting innovation in French startup companies and ensuring user protection within the crypto gaming sector. For years, crypto games like Sorare and Stables have operated in a legal gray area, as regulators considered whether they met the criteria for games of chance and gambling, which could have resulted in substantial tax burdens on these businesses.The Jonum regime, however, signifies a breath of fresh air for the local crypto gaming industry. By introducing a dedicated regulatory framework, it aims to legitimize an industry that has grown rapidly but has been plagued by concerns about scams and legal ambiguities. This development represents a positive step towards providing the crypto gaming industry with a clear legal structure, distinct from traditional video games and gambling.One of the key aspects of the Jonum regime is its legal definition of "Jonum." This definition is a groundbreaking move as it provides a foundation for understanding and regulating the unique blend of crypto-powered video games, setting the stage for tailored regulations that promote innovation while ensuring user safety.Despite the overall support for the Jonum regime, there remains a faction of deputies who oppose it. The legislation will now undergo scrutiny by the Constitutional Council, which has the authority to review and potentially reject it. This dissent suggests that concerns or opposition to the proposed regulatory framework still persist, and the road to fully embracing crypto gaming in France may encounter some hurdles.Critics argue that the Jonum regime may create a preference for crypto games at the expense of traditional online casinos. This has raised concerns that traditional gambling platforms may seek to adapt to the play-to-earn and Web3 sectors to take advantage of the potential profitability. For instance, the state-controlled betting system, Pari Mutuel Urbain (PMU), has already ventured into the crypto space with its fantasy horse racing game, Stables.The Jonum regime introduces significant requirements for users, particularly related to age reporting. However, unlike more stringent regulatory approaches in other countries, the legislation does not mandate identity verification during the initial registration process. Instead, primary identity verification is required when users withdraw in-game earnings, with the intention of enhancing user protection.Additionally, the legislation imposes restrictions on the promotional activities of Web3 games using influencers. It specifically prohibits the use of influencers for promotional activities on online platforms that cannot effectively exclude minors, aiming to ensure that promotional efforts do not inadvertently target or influence underage audiences.Compliance oversight under the Jonum regime falls under the responsibility of the Autorité Nationale des Jeux (ANJ), also known as the French National Gambling Authority. This regulatory body will oversee compliance with regulations related to crypto games, age reporting, identity verification, and promotional restrictions.The Jonum regime represents a pivotal moment for the crypto gaming sector in France, providing much-needed clarity and structure to an industry that has grappled with regulatory ambiguity. It aims to strike a balance between supporting the growth of French startups and creating a safe and transparent environment for players.As the Jonum regime awaits examination by the Constitutional Council, the future of crypto gaming in France hangs in the balance. The outcome of this review will determine whether the legislation becomes final and sets a precedent for other nations grappling with the regulation of crypto gaming. Debates continue to revolve around the potential impact of the Jonum regime on the broader gaming and gambling industries, with proponents and critics expressing their viewpoints on its implications for fairness and competition.