Apple's updated App Store guidelines speak about what NFTs can and can’t be used for.
Apple has been working for a while to bring a framework for NFT sales.
Photo Credit: Unsplash/ Laurenz Heymann
Apple has updated its App Store policy to restrict apps from using non-fungible tokens (NFTs) to incentivise users to purchase items or features the tech giant can't tax. The Cupertino, California-based company charges up to 30 percent both on all purchases made on its App Store and all money spent when using apps. In a recent update, Apple updated its policy to prohibit apps from using NFTs that include "buttons, external links or other calls to action that direct customers to purchasing mechanisms other than in-app purchase."
Apps can "sell and sell services related to" NFTs "such as minting, listing and transferring," according to Apple's update. But, using NFTs to unlock additional "features or functionality" is not allowed.
Folding additional functionality and premium features into NFTs is a way to boost their utility or value. With trading volumes cratering in recent months NFT creators are trying to be more creative with how they market NFTs. Attaching added features is, in some cases, viewed as a way to increase demand.
That said, Apple's move may actually deter users from purchasing NFTs, as the main use case for NFTs is that they can sometimes unlock token-gated content. For example, the Moonbirds NFTs and Bored Ape Yacht Club NFTs offer holders exclusive access to various communication channels, merchandise, and other such perks.
Apple has already been criticised by NFT startups for wanting to take 30 percent of NFT transactions when marketplaces charge about one-tenth of that percentage. Effectively Apple's policy means that users are severely discouraged to do anything more than using marketplace apps like OpenSea and Magic Eden to view NFTs. If a user wants to buy or sell an NFT, they can do so for much cheaper on the marketplace's website.
Beyond just NFTs, Apple has also revised some of its language surrounding cryptocurrency exchange apps listed on its App Store.
"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," the guidelines state.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
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