30% ‘Apple Tax’ to spend on NFT transactions?

by James · October 25, 2022

Apple recently announced updates to its App Store review guidelines. Part of the same was dedicated to providing clarity around Non Fungible Tokens or NFTs.

NFTs, as such, are allowed to exist in apps on the App Store. However, they cannot unlock additional features or content. The recently released guidelines clarified,

“Apps can use in-app purchases to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing and transfer. Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app.”

In addition, developers are not allowed to create “buttons, external links or other calls to action” that tell users how to bypass the App Store to purchase NFTs via other platforms. Instead, the App Store wants users to make in-app purchases.

Furthermore, it also prevents apps from using mechanisms such as “QR codes, cryptocurrencies, and cryptocurrency wallets” that can be used to unlock content or functionality within an app.

Apple Updated App Store Review Guideline Updates to Include NFTs and Related Content on Crypto Trading Apps: Apps cannot use their own mechanisms to unlock content or functionality, such as cryptocurrencies and cryptocurrency wallets. https://t.co/q4FO26iQUJ

— Wu Blockchain (@WuBlockchain) 25 October 2022

Also Read: ‘God of Cricket’ Sachin Tendulkar enters the world of NFT with Polygon

The American multinational technology company has also rejected calls to exclude NFTs from its “Apple Tax” on purchases. This means that the standard 30% commission rate on NFT purchases will apply.

Reactions from the community were generally mixed on social media platforms. Tim Sweeney – CEO of Epic Games – tweeted both extreme perspectives:

For cryptocurrency enthusiasts, this means that Apple is now adding a 30% tax on your so-called “true ownership” of digital goods.

To critics of cryptocurrency, this shows that Apple’s motivations are purely monetary. For digital goods, they support NFTs they tax, and ban NFTs they don’t tax. https://t.co/RWZC1rSUwh

— Tim Sweeney (@TimSweeneyEpic) 24 October 2022

It is worth recalling that Magic Eden recently removed the service from the App Store due to its policies and high commissions. In an opinion on the same, the executive stated that Apple “crushed” another new technology and should be stopped.

Now Apple is killing all NFT app businesses they can’t tax, squashing another new technology that could compete with the grotesquely overpriced in-app payment service. Apple must be stopped. https://t.co/4KChp6jtFZ

— Tim Sweeney (@TimSweeneyEpic) 23 September 2022

Also read: Should NFTs be taxed in the US?

Crypto exchange

Alongside NFTs, Apple also provided clarity regarding crypto exchange apps. The guidelines noted,

“Apps may facilitate transactions or transfers of cryptocurrency on an approved exchange, provided they are only offered in countries or regions where the app has appropriate licensing and permits to provide a cryptocurrency exchange.”