Apple Crypto and NFT Rules Published
Tech powerhouse Apple has published crypto and non-fungible token-specific rules in its App Store policies. The new rules specify what uses of NFTs are permitted and prohibited. It also discusses when a cryptocurrency exchange app can be listed.
It allows apps to make use of in-app purchases to "sell and sell services" associated with NFTs, such as "listing, minting, and transferring."
Additionally, it restricts NFTs obtained elsewhere to viewing only.
Furthermore, new Apple crypto guidelines prohibit apps from including "external links, buttons, or other calls to action", which may allow users to avoid app-store transaction fees when buying NFTs. It will also forbid apps from using "QR codes, cryptocurrencies, and cryptocurrency wallets" to unlock any content or functionality.
The guidelines also do not allow the use of cryptocurrency for in-app purchases, instead allowing only fiat purchases such as debit or credit cards with a "valid payment method".
The tech company seems to be stepping up its NFT "Apple tax", which comprises in-app NFT purchases in its standard 30% fee on all purchases, by mandating that all NFT transactions take place within apps.
Apple NFT taxation
Apple has been working on a framework for NFT sales for quite some time. Regarding token taxation, Apple has integrated in-app purchases to apply a standard 30% commission rate on all purchases.
The tech firm has been criticised for charging a 30% commission on NFT sales made via apps from popular NFT marketplaces such as OpenSea or Magic Eden. Many people have described this taxation as "grotesquely overpriced". The average commission on NFT purchases is around 2.5%.
Because of the high taxes, Magic Eden has reduced their functionality and removed its services from the App Store.
Users can only browse and view their NFTs with the Magic Eden Apple app.
The new Apple crypto guidelines do not alter the company's existing policy on cryptocurrency trading apps provided by exchanges such as Binance and Coinbase, where crypto trading is exempt from the 30% "Apple tax".
New language, however, was added to clarify that crypto trading apps can only be provided in "countries or regions where the application has appropriate licencing and authorisations to provide a cryptocurrency exchange".
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.