Apple Unveils New App Store Rules With Heavy Taxes on Crypto and NFT Payments

Tech heavyweight Apple Inc. has finally decided to formalize its policies for iOS apps that deal with cryptocurrencies and non-fungible tokens (NFTs). Interestingly, Apple has also given its formal approval to activities such as in-app minting, buying, and selling of NFTs.

The new rules by Apple confirm how the NFT purchases will be taxed. Furthermore, Apple also clarifies certain rules for the listing of the crypto exchange apps on the iOS platform.

During the update on Monday, October 24, the App Store guidelines use a language wherein it would allow in-app purchases of NFTs. However, it would bar NFTs acquired from elsewhere from being used apart from just viewing.

The official announcement notes: “Apps may use in-app purchase to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing, and transferring. Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app. Apps may allow users to browse NFT collections owned by others, provided that the apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.”

In addition to preventing external links and buttons, Apple will prevent the apps from using mechanisms such as QR codes, cryptocurrencies, and cryptocurrency wallets”. This would prevent users from unlocking any additional functionality within the app. Furthermore, the tech giant is also doubling down on its NFT “Apple Tax”. Thus, all in-app NFT purchases will be subject to a 30% commission rate.

Apple has been facing massive criticism for charging 30% commission on NFT sales conducted through popular marketplaces such as  OpenSea or Magic Eden. Market experts have called this move “grotesquely overpriced” in comparison to the 2.5% commissions on NFT purchases.

Magic Eden has already removed its service from the App Store after learning of the policy. Similarly, other NFT marketplaces have also scaled back their application functionality.

In addition to NFTs, Apple has also revised rules of the App Store to list crypto exchanges on the iOS platform.  However, it has not made major changes to its existing policy on cryptocurrency trading apps put forward by exchanges such as Binance and Coinbase wherein trades conducted won’t be subject to 30% Apple Tax.

But Apple states that crypto exchanges can only offer their apps in “countries or regions where the app has appropriate licensing and permissions to provide a cryptocurrency exchange”.