Increased NFT tax of 30% and exchange restrictions under new Apple guidelines
For the first time, tech powerhouse Apple has established explicit regulations for non-fungible tokens (NFTs) in the App Store guidelines regarding NFTs and crypto exchanges.
The new regulations define when a crypto exchange app can be published and establish how NFT transactions are to be taxed and what they can and cannot be used for.
The language that allows in-app purchases of NFTs, but prohibits NFTs earned in other ways from being used for anything other than viewing, was added to the App Store standards on October 24.
In addition, it allows NFT-related services such as “mining, selling and transferring” to be “sold and sold” through applications that use in-app purchases. The technology company ensures that every NFT transaction is done in the app. However, this appears to be an additional effort to enforce its NFT “Apple tax.” It includes in-app NFT sales at its usual 30 percent commission rate on all purchases.
“Buttons, external links or other calls to action” in apps will not be allowed, as this will allow customers to avoid paying app store commissions when purchasing NFTs. Additionally, it prohibits apps from using techniques that can be used to unlock content or functionality within an app, “such as QR codes, cryptos, and crypto wallets.”
The company has come under fire for using its 30 percent commission on NFT sales made through NFT marketplace apps such as OpenSea or Magic Eden, a move labeled as “grotesquely overpriced” compared to the typical 2.5 percent commissions on NFT purchases. Nevertheless, the rules have been implemented.
After learning about the regulation, Eden (Vice President, Marketing Communications-Apple) said it deleted the service from the App Store, and other NFT markets have reduced the functionality of their applications so that users can only browse and view their own NFTs .
According to Apple’s policy, in-app purchases cannot be made using crypto; instead, only fiat money and “legitimate payment methods” such as debit or credit cards can be used.
The new rules do not change Apple’s current stance on crypto trading applications offered by exchanges such as Binance and Coinbase, where trades are exempt from the 30 percent “Apple tax” to be used for trading crypto assets.
More specifically, additional wording was added to state that the company’s app can only offer crypto exchange services in “countries or territories where the app has the necessary licenses and authorizations to conduct a crypto exchange.”
The author is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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