Apple (NASDAQ: AAPL), a leading technology company, published the rules for adding NFTs and other information on cryptocurrency trading apps on Monday, October 24. Apple has for the first time made clear certain particular guidelines for the acquisition of non-fungible tokens (NFTs).
The news regulations specify what uses of NFTs are permitted and prohibited. The topic of listing a cryptocurrency exchange app is also covered. Users will be allowed to buy NFTs in-app in accordance with the revised App Store rules. Apple, however, only permits viewing of NFTs obtained from other sources. According to the official announcement:
Apps may use in-app purchase to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing, and transferring. Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app. Apps may allow users to browse NFT collections owned by others, provided that the apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.”
It’s interesting to note that Apple will also stop apps from employing techniques like “QR codes, cryptocurrencies, and cryptocurrency wallets” to access any content or functionality.
NFT Taxation And The Apple App Store
To develop a foundation for NFT sales, the firm has been working for a while. Apple has integrated in-app NFT transactions to apply a common 30% commission rate to all purchases when it comes to taxation on NFT sales.
There is no room for it because Apple forbids any NFT purchases outside of the app. The firm has come under fire for charging a 30% commission on NFT sales made through the apps of well-known NFT marketplaces like OpenSea or Magic Eden. This taxes has been dubbed “grotesquely exorbitant” by several. The typical commission rate for NFT purchases is 2.5%.
Magic Eden claimed that as a result of the hefty taxes, they have reduced their functionality and taken their services off the the company’s Store. The Magic Eden Apple app only allows users to explore and view their personal NFTs.
All trades on cryptocurrency exchange applications like Coinbase and Binance will be subject to a 30% tax. The company continues:
“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”.