The New Apple Regulations Increase The Tax On NFTs To 30% And Geo-limit Exchanges

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Last Updated on October 25, 2022 by Bitfinsider

Technology heavyweight This marks the first time that Apple has codified explicit regulations for nonfungible tokens (NFTs), as the company has now clarified its policies regarding cryptocurrency exchanges and nonfungible tokens (NFTs).

The new rules not only clarify the criteria of when a cryptocurrency exchange app can be listed, but they also define how NFT purchases will be taxed, what they can and cannot be used for, and what they can be used for.

It was announced on October 24 that new language would be added to the guidelines for the App Store. This new language will permit the in-app purchase of NFTs, but it will prohibit any NFTs obtained from any other source from being used for any purpose other than viewing.

In-app purchases can be used to “sell and offer services” related to NFTs, such as “minting,” “listing,” and “transferring,” thanks to this feature, which enables applications to do so.

However, the technology business appears to be doubling down on its “Apple tax” on non-fungible token purchases by ensuring that all non-fungible token transactions take place within the app. This “Apple tax” includes the company’s regular commission rate of 30% on all sales.

It won’t be possible for developers to incorporate “buttons, external links, or other calls to action” in apps since this could provide consumers with a means to get around the commissions that app stores take when they buy NFTs. It also stops apps from using techniques “such as […] QR codes, cryptocurrencies, and cryptocurrency wallets,” which may be used to unlock content or functionality within an app but are prohibited from usage by this feature.

The rules were implemented despite the fact that the company was receiving criticism for applying its 30% commission on NFT sales conducted through NFT marketplace apps such as OpenSea or Magic Eden. This move has been labeled as “grotesquely overpriced” in comparison to the average commissions of 2.5% on NFT purchases, and it is one of the reasons why the company is receiving criticism.

Magic After learning about the regulation, Eden stated that it deleted its service from the App Store. Since then, other NFT markets have also reduced the functionality of their applications, limiting users to the ability to simply browse and view their own NFTs.

Apple’s standards do not permit the use of cryptocurrencies like bitcoin or ether for in-app purchases. Instead, users must use a “valid payment mechanism” like a credit card or debit card in order to make in-app purchases.

Apple’s current policy on cryptocurrency trading apps has not been altered by the new guidelines. This means that exchanges like Binance and Coinbase, where trades are not subject to the 30% “Apple tax,” can continue to offer these apps to their customers.

However, new language was added to make it clear that cryptocurrency exchange apps can only be offered in their app in “countries or regions where the app has appropriate licensing and permissions to provide a cryptocurrency exchange.” This language was added to clarify that cryptocurrency exchange apps can only be offered in their app in those countries or regions.

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