French National Assembly rules that NFT games are not gambling. 

Last Tuesday, we watched as the French National Assembly voted in favour of the Sorare Law, with a resounding 437 members voting in favour challenged only by 77. The Sorare Law would be the first of its kind, as it lays out a dedicated regulatory framework for games using or drawing on NFTs and crypto facilities for play to earn. It’s important to note that the law has not been formally passed, as it is yet to be approved and ratified by the Constitutional Council, which reserves the right and capability to review and reject it.

The Sorare Law would define NFT games as separate and distinct from gambling.

The positive reception within the assembly has been a landmark within the Web3 gaming space, as it could prevent many games from being designated as gambling sites, which would have significant tax implications. The Law has also been welcomed by those outside of the crypto space, as it has been recognised as fostering a balance between innovation amongst French startups while ensuring user protection and safety.

But there are also critics who have voiced concerns that the law would enable NFT play-to-earn formats to be exploited by gambling platforms who could co-opt the framework outlined by the Sorare Law, resulting in a blurred line between gaming an gambling.

Ultimately, regardless of which side of the fence one sits — in favour or against this law — it is a significant moment in the Web3 space. The Sorare Law signifies the first of many legal instruments that will be defined over the next decade as nations grapple with the balance between tech/cryptocurrencies/NFTs and the wider society.

Regardless of the outcome, the passing or failing of the Sorare Law will likely set international precedent and define how cryptocurrency is understood and regulated.

Stratis will be following closely.

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