Apple Reject Calls To Exempt NFTs From App Store’s 30% Tax

Apple has rejected proposals to exempt non-profit organizations from the 30% “Apple Tax” on in-app sales.

iexclusivenews reports that Monday, the tech giant defined its regulations for iOS apps that deal with non-fungible tokens.

Giving its first formal approval to allow in-app NFT minting, purchasing, and selling – actions that it had never technically prohibited.

However, Apple’s de facto restriction on NFT trading in apps is likely to persist.

This is because in-app NFT transactions must use Apple’s in-app commerce rails.

Which require a 30% cut. Fees have long been a source of contention for creators and marketplaces.

With many preferring to limit in-app NFT capabilities rather than lose a large chunk of revenue.

Just last month. The Information reported on how Apple’s pricing practices are driving markets and creators away from its ecosystem. Even leading to outright abandonment of NFT connections.

Some game publishers are still cautious about web3 integrations. @Ubisoft has walked back on their initial bullish comments towards NFTs. @Apple seems to be sticking with its 30% tax on in-app #NFT purchases, despite likelihood that it will limit web3 adoption.

— Galaxy (@galaxyhq) October 24, 2022

[the_ad id=”41664″]

Because Apple’s “in-app purchase” feature does not take crypto payments, apps that choose to offer NFT mints look unlikely to accept crypto in exchange.

Apple’s App Store standards were updated on Monday for the first time to include explicit regulations for NFTs.

The policy change also prohibits apps from providing exclusive access to NFT owners. Or linking their users to third-party sites where they can buy, sell. And mint outside the Apple environment, thereby avoiding the levy dubbed the “Apple Tax.”

[the_ad id=”41670″]

“Apps may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets, etc.”

Reads section 3.1.1. of its App Store rules on Oct. 24 (the crypto mentions do not appear in an Oct. 22 version).

However, iexclusivenews Nigeria reports that the updated wording does not fundamentally change Apple’s existing policies permitting in-app crypto trading on services such as Coinbase and FTX, which don’t have to pay 30% fees.

But it does add some more explicit teeth (emphasis added in bold):

Revised 3.1.5(iii): “Exchanges: Apps may facilitate transactions or transmissions of cryptocurrency on an approved exchange. Provided they are offered only in countries or regions where the app has appropriate licensing and permissions to provide a cryptocurrency exchange.”