The tech heavyweight Apple has clarified the rules of its App Store regarding non-fungible tokens (NFTs) and cryptocurrency exchanges, marking the first time it has codified specific rules for NFTs.
The new rules confirm how NFT purchases will be taxed and for what they can and cannot be used, while clarifying the rules about when a cryptocurrency exchange app can appear.
In the October 24 update of the App Store guidelines, text was added that allows for in-app purchases of NFTs but prohibits NFTs purchased elsewhere from being used for anything other than viewing them.
It also allows apps to use in-app purchases to "sell and trade services" related to NFTs, such as "minting, listing, and transferring."
However, it seems that the tech company is painting itself into a corner with its "Apple tax" on NFTs - which groups in-app purchases of NFTs under its standard commission rate of 30% on all purchases - ensuring that all NFT purchases are made in-app.
Apps will not be allowed to include "buttons, external links, or other calls to action," which could provide users a way to bypass App Store fees when purchasing NFTs. It also prevents apps from using mechanisms "such as QR codes, cryptocurrencies, and cryptocurrency wallets," which could be used to unlock content or features within an app.
The rules come despite the company facing criticism for applying its 30% commission on NFT sales made through NFT marketplace apps like OpenSea or Magic Eden, a move that has been labeled "grotesquely overpriced" when compared to the average 2.5% commissions on NFT purchases.
Magic Eden has stated that it has removed its service from the App Store after learning of the policy, and other NFT marketplaces have reduced the functionality of their apps, as users can only browse and view the NFTs they own.
Apple's guidelines have also ruled out the use of cryptocurrencies for in-app purchases, allowing only purchases in fiat money, in addition to a "valid payment method" such as debit or credit cards.
The new guidelines do not change Apple's existing policy on cryptocurrency trading apps proposed by exchanges like Binance and Coinbase, where transactions are not subject to the "Apple tax" of 30%.
However, a new language has been added to clarify that crypto exchange apps can only be offered in their app in "countries or regions where the app has the appropriate license and permissions to offer a cryptocurrency exchange."