Increased NFT tax of 30% and exchange restrictions under new Apple guidelines

Apple has established guidelines for NFTs for the first time and clarified the regulations governing crypto exchanges and payments

By Shashank Bhardwaj

2 min read

Published: Oct 25, 2022 05:45:42 PM IST

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For the first time, technology powerhouse Apple has established explicit regulations for nonfungible tokens (NFTs) in its App Store policies regarding NFTs and crypto exchanges.

The new regulations define when a crypto exchange app may be published and establish how NFT transactions will be taxed and what they may and may not be used for.

The language that permits in-app purchases of NFTs but prohibits NFTs obtained in other ways from being used for anything other than watching was added to the App Store standards on October 24.

Additionally, it allows NFT-related services like "minting, selling, and transferring" to be "sold and sold" through applications using in-app purchases. The tech corporation is making sure that every NFT transaction is made in-app. However, this appears to be an additional effort to enforce its NFT "Apple tax." It includes in-app NFT sales in its usual 30 per cent commission rate on all purchases.

"Buttons, external links, or other calls to action" in apps won't be permitted since doing so would allow customers to avoid paying app-store commissions when buying NFTs. Additionally, it bans apps from utilising techniques that may 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 applying its 30 percent commission on NFT sales made through NFT marketplace apps like OpenSea or Magic Eden, a move labelled 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 its service from the App Store, and other NFT markets have reduced the functionality of their applications so that users can only browse and see their own NFTs.

According to Apple's policies, in-app purchases cannot be made using crypto; instead, only fiat money and "legitimate payment methods" like debit or credit cards may be used.

The new rules don't alter Apple's current stance on crypto trading applications offered by exchanges like 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 authorization to perform a crypto exchange."

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash