Tag: Apple

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Coinbase Crypto Exchange Crypto Wallets NFTs

Apple Blocks Coinbase NFT Transfers Over In-App Purchase Dispute

Leading cryptocurrency exchange, Coinbase said it’s been forced to remove non-fungible token (NFT) transactions from the iOS version of its wallet app, following Apple’s decision to apply its ‘Apple tax’ to these transactions.

Coinbase said the NFT feature had been disabled to get around a block on its latest app release due to Apple’s transaction fees policy.

Apple’s policy doesn’t straight-up ban NFT transfers, but it does require that 30 percent of the gas fees — the blockchain network fees paid by users to process the transactions — are paid directly to Apple. 

Complying is Impossible: Coinbase Boss

Coinbase’s official Twitter account posted a thread on Thursday explaining why the NFT functionality had been removed from its iOS wallet app. Coinbase pointed out that it was not possible for it to comply with Apple’s policy as Apple’s in-app purchase system doesn’t currently support crypto.

The thread also likened Apple’s policy to “trying to take a cut of fees for every email that gets sent over open internet protocols.”

Coinbase CEO, Brian Armstrong, tweeted that conversations with Apple had recently started to become “absurd” as Coinbase struggled to navigate what they consider nonsensical policies imposed by Apple.

Cryptosphere Reacts

On Twitter, many users have expressed their frustration with what they perceive as excessive greed interfering with the growth of crypto.

Others pointed to Solana’s soon-to-be-released Saga phone as a potential way around Apple’s policies.

Apple announced in October that NFT in-app transactions would be subject to the same 30 percent fee as all other types of in-app transactions. Apple’s insistence on applying their tax to NFT transactions has meant that NFT marketplaces and other crypto-centric functionality has remained largely absent from its App Store. 

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Crypto News Gaming NFTs Payments

Apple Bans NFT Utility  – Continues 30% NFT Commission

The news isn’t great for NFTs following tech giant Apple’s updated App Store review guidelines released Monday October 24 — the rules allow for displaying in-app NFTs but ban the use of NFTs to unlock additional content or features within apps.

In addition to restrictions on NFT usage, the guidelines also state that apps must use Apple’s ‘in-app’ purchase functionality exclusively for any payments required to mint, list or transfer NFTs. The use of any other external payment method, including crypto, is not allowed. 

Apple forces apps to use its ‘in-app’ purchase functionality because it allows the company to collect what’s colloquially known as the ‘Apple Tax’ — a 30 percent surcharge applied to every payment made using ‘in-app’ purchases.

For context, NFT marketplaces like OpenSea and Magic Eden charge a 2.5 percent commission on sales.

No Token-locked Content on App Store

Apple’s updated guidelines seem to intentionally limit the functionality of NFTs by preventing some of their most interesting use cases. For example, the guidelines specifically state that NFTs cannot be used to unlock token-locked functionality within the app:

“Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app.” 

Apple’s App Store review guidelines

Banning the use of NFTs in this way will substantially restrict their utility in apps available on Apple’s App Store and may even impact NFT prices.

No External Payments, Including Crypto

The guidelines also specifically ban the use of external links to non-Apple payment methods:

“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.”

Apple’s App Store review guidelines

While banning external forms of payment is standard practice for Apple — enabling them to collect a 30 percent surcharge on transactions— it seems to make less sense in the context of NFTs since they’re a form of crypto and are most often traded using other cryptocurrencies, not fiat currencies.

The new guidelines also updated some language around crypto exchange apps intended to ensure they’re compliant with local regulations:

“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.”

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Bitcoin Crypto News

Apple CEO Personally Invested in Crypto, but Has No Immediate Plans for the Company

Earlier this week at The New York Times‘ Dealbook conference, Tim Cook, the venerable CEO of Apple, disclosed that he held crypto in his personal capacity, describing it as “interesting” and something that he had been “researching”.

Crypto For Cook, Not Apple

When asked about crypto and potentially accepting it through Apple Pay, Cook responded:

It’s something we are looking at. It’s not something we have immediate plans to do … I would sort of characterise it as there are things that I wouldn’t do, like … our cash balance. I wouldn’t go invest it in crypto not because I wouldn’t invest my own money in crypto, but because I don’t think people buy an Apple stock to get exposure to crypto … so I wouldn’t do that.

Tim Cook, CEO, Apple

Whichever way you look at it, Cook was quick to pour cold water on any notion that Apple would become either the next company to put bitcoin on its balance sheet, or otherwise accept it as a means of payment.

I am not planning in the immediate future to take crypto for our products, as a means of tender, but there are other things that we are definitely looking at.

Tim Cook, CEO, Apple

When asked what he was “definitely looking at”, Cook laughingly responded: “like I wouldn’t want to have anything to announce today”. The subtext was fairly transparent. Apple, a company notoriously secretive about upcoming announcements and innovation, appears to be working on something, but as yet is not ready to disclose anything.

Michael Saylor, famous for referring to MicroStrategy’s cash reserves as a “giant melting ice cube”, couldn’t resist adding his two cents when he suggested that a shift to the Bitcoin standard could generate at least US$1 trillion in shareholder wealth:

Something is Brewing at Apple, But What?

As the second-largest company on Earth with a market capitalisation of US$4.4 trillion, any moves made by Apple into the crypto space would necessarily be considered and measured. Unlike Saylor, who retains control of his company, MicroStrategy, changes to treasury strategy or product line in a company such as Apple is a lot trickier to implement.

Things are no doubt happening at Apple, but at present it isn’t clear what these changes are going to look like. In May this year, Crypto News Australia reported that Apple was in the process of hiring an expert with experience in digital currencies and wallets.

Does this mean it will start accepting crypto, or allowing crypto purchases with Apple Pay or adding bitcoin to its treasury? Nobody knows for sure, but one thing remains clear – Apple is working on something and usually, that something is big.

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Crypto News Crypto Wallets

Lumi Becomes Latest Crypto Wallet to Support Apple Pay

Lumi Becomes Latest Crypto Wallet to Support Apple Pay

cLeading digital currency wallet, Lumi, announced on Friday a new software update that will enable customers to purchase cryptocurrencies through Apple Pay, the digital payment platform of Apple Inc. This comes as an addition to the already-existing payment options available for the users, making buying and trading of cryptos easier on the platform. 

Meanwhile, it’s worth noting that the parent company of Apple Pay is seemingly not a big fan of cryptocurrencies, judging their past actions on crypto-related services.

Apple Pay Lessens KYC Procedures in Buying Crypto

As reported, the integration of Apple Pay on the crypto wallet reduces the need for the customers to provides know-your-customer (KYC) verifications before transacting cryptos on the platform. Lumi noted that the new payment method would be available in 60 countries, including Australia. However, users can only buy the supported cryptos – Bitcoin (BTC), Ether (ETH), Tether (USDT), and more – at $1,000 and $7,500 as the daily and weekly limit, respectively.

While commenting on the integration, Lumi said “this step has opened access to an alternative purchase option for hundreds of thousands of users around the world. […] Lumi Wallet’s iOS users will be able to choose a new option to buy crypto using Apple Pay.” 

Apple Pay simplifies the crypto purchasing process as users no longer need to verify their details since they already have an account with Apple Pay wallet.

But, Apple is not a fan

The technology giant, Apple had once introduced a regulation that banned many crypto apps for mining on the Apple store. Recently in September, the founder of Coinbase, Brian Armstrong took to his Twitter handle to accused the company of making innovations in the cryptocurrency space very stiff. Crypto companies are “reluctant to speak out on these topics for fear of retaliation,” he added.

Meanwhile, many industry players, including the CEO of MicroStrategy, Michael Saylor, predicted that the tech giant would eventually make a large scale investment in Bitcoin in the future.