Apple updates App Store policies, imposing a 30% commission on NFTs

Apple updates App Store policies, imposing a 30% commission on NFTs

Editor’s Note: With so much market volatility, stay tuned for daily news! Get caught up in minutes with our quick summary of today’s must-read news and expert opinions. Sign up here!

(Kitco News) – Apple has released the latest updates to its App Store policies, which for the first time include specific rules for non-fungible tokens (NFTs) as well as an update to its cryptocurrency exchange policy.

The new additions clarify how NFT purchases will be taxed and what they can be used for, as well as clarifying when a cryptocurrency exchange app is available for listing.

According to the newly added guidelines for NFTs, “Apps may use in-app purchases to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing and transfer.” These apps will only be permitted to allow users to view their own NFTs and are not permitted to include any other special features or functionality unlocked by an NFT.

Users are also allowed to browse other people’s NFT collections, “provided the apps do not include buttons, external links, or other calls to action that direct customers to purchase mechanisms other than in-app purchases.”

The revised updates appear to be focused on ensuring that purchases made on all applications are routed through the App Store and are subject to commissions. NFT “Apple Tax” automatically applies a standard 30% commission rate to all purchases, and the new rules ensure that all NFT purchases are made within the app.

See also  Do you have an iPhone? Flighty is a must-have app for traveling this holiday season

This goal was further supported by the following revision to previous policy: “Apps cannot use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets, etc.”

These alternative mechanisms would potentially enable users to bypass app store commissions on NFT purchases. The exclusion of QR codes and cryptos helps prevent the ability to unlock content or additional functionality within an app.

Crypto supporters have widely expressed their displeasure with Apple applying a 30% commission to all NFT sales made through NFT marketplace apps for platforms such as OpenSea or MagicEden. Most consider this markup to be significantly overpriced compared to an average NFT buying commission of 2.5%.

The policy has led some platforms, including MagicEden, to remove their apps from the App Store; others have reduced the functionality of their applications to only allowing users to browse or view the NFTs they own.

The use of crypto for in-app purchases is also prohibited by App Store policies, meaning that only fiat currencies are allowed to be used with a “valid payment method” such as a debit or credit card.

The main change applied to cryptocurrency exchange applications is that they can only be offered in “countries or regions where the app has the appropriate licensing and permissions to offer a cryptocurrency exchange.”

Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *