Jonum: a scheme that (greatly) divides the sector

Wednesday, April 17, 2024

Far from bringing them closer together, the "Jonum" regime, which introduces a specific framework for games using blockchain, has accentuated the divide between crypto and traditional players.

The end of a long battle. After months of debate, last week (12 April) the French Parliament definitively adopted the SREN law, which creates the "Jonum" regime for "digital games with a monetisable object".

The Jonum regime, which is a first on a global scale, allows crypto players to escape the application of gambling law. For months, blockchain-based games such as Sorare have been explaining that such an eventuality would "kill" the industry.

On paper, then, the passing of the law is a good thing. But only on paper, because in reality almost everyone is dissatisfied with the new regime, both on the side of crypto and traditional players.

"We all welcome the fact that instead of having two cannonballs on each foot, we'll only have one," tackles one crypto start-up. "But that's not the right way to approach things," he adds, referring to a "disproportionate arsenal".

Under Jonum, gaming companies will have to put in place systems to control the age of players and combat money laundering and the financing of terrorism. "The step is very high, especially for small players who are not sized like traditional players," explains another start-up.

On the side of "traditional" players such as Française des jeux (FDJ) or casinos, there are questions about the relevance of implementing this regime. "We are creating an exception to the principle of gambling on the grounds that there is blockchain", one of them believes.

Postures not necessarily likely to bring the two worlds closer together in the coming months.

"If a lot of people are grumbling, it's because we've found a form of balance", attempts one MP, who points out that while Jonum regime games will not be able to reward players in "legal tender" (euro in this case), it will still be possible to do so in crypto.

As a reminder, the "Jonum" regime will be in effect for three years from the law's promulgation, i.e. in a few months' time. There will be a progress report after 18 months. Perhaps at that point, some adjustments will be made.

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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