Apple temporarily removed the crypto wallet MetaMask from its App Store, prompting Coinbase CEO Brian Armstrong to suggest filing an antitrust action against the Silicon Valley giant. MetaMask said it was aware that Apple users were not able to download its app, but that the issue wasn’t related to anything malicious. The company also warned […]
The post Apple’s App Store Briefly Removes Crypto Wallet MetaMask, Coinbase CEO Says Antitrust Action May Be Needed appeared first on The Daily Hodl.
A Supreme Court judge has rejected a request from Epic Games that would've immediately loosened Apple's App Store payment rules, to the potential benefit of crypto and NFT apps.
Crypto app developers hoping for a loosening of Apple's App Store rules will have to wait longer after a United States Supreme Court held off on granting a request to let apps direct users to payments outside of Apple’s ecosystem.
An Aug. 9 decision from Justice Elena Kagan declined to let a federal appeals court decision take immediate effect as Epic had asked — with no explanation for the decision.
Not surprisingly, the Supreme Court (by decision of Justice Kagan, who is the SCOTUS judge to whom such 9th Cir. matters are assigned) denied Epic Games' motion to enforce the injunction it won in district court 2 years ago.
— Florian Mueller (@FOSSpatents) August 9, 2023
Epic was right; legal standard favored Apple.
1/3 pic.twitter.com/UnpnphgapG
In April, the Court of Appeals for the Ninth Circuit ruled Apple violated California’s competition laws by not allowing apps to direct users to non-Apple linked payment solutions.
The ruling meant that developers such as Epic Games would be able to funnel users to alternative payment methods, giving them an option that circumvents Apple’s 30% tax on in-app payments.
The 30% Apple tax has also been a hurdle for crypto firms, including those that want to offer iOS users the ability to purchase non-fungible tokens.
At the moment, there exists no means to buy an NFT on an app listed on Apple’s App Store other than through its in-app payments system, which charges a 30% commission rate and only allows purchases using fiat.
Apple has REALLY tight rules regarding any app that is used on their devices. typically they require a 30% tax on all financial transactions, but bc that's impossible with crypto the way it is, they just ban the apps that have direct links/usage to swapping and trading.
— Caleeeb (@adacaleeeb) August 7, 2023
Apple’s guidelines don’t allow apps to take crypto to unlock app functionality or make in-app purchases using crypto.
This has led to most crypto apps offering only limited functionality, such as being able to view balances and assets only. Crypto exchange apps are unaffected.
Related: Lawmakers probe Apple’s App Store policies on blockchain, NFTs
Justice Kagan’s rejection of Epic’s request means Apple will get at least a few more months of reprieve from the ruling as it plans a Supreme Court appeal to the decision.
The Ninth Circuit ruling will come into effect if the Supreme Court refuses Apple’s appeal, however.
In its argument to lift the appeals court hold Epic claimed it applied a “lax legal standard” in granting the stay which would injure Epic and “innumerable consumers and other app developers for a significant period of time.”
Apple hit back saying the stay has been in place for two years already and doesn’t apply to Epic anyway. Apple booted Epic’s Fortnite off the App Store in August 2020 for attempting to workaround Apple’s in-app payments system.
NFT Collector: On-chain music sounds off with latest raise, artistic duo Hackatao find their lane
The store’s team said games can offer NFTs for sale or to earn, but developers must declare this feature in their game's descriptions and must not allow gambling.
The Google Play store now allows video game publishers to sell nonfungible token (NFT) games in its store, according to a July 12 blog post from the store’s group product manager, Joseph Mills. In the post, Mills states that Google Play is “pleased to share that we’re updating our policy to open new ways to transact blockchain-based digital content within apps and games on Google Play,” including “boosting user loyalty through unique NFT rewards.”
1) A new blockchain-based content policy that states that devs must complete a declaration for apps that enable users to transact blockchain-based digital content. Additional requirements apply for NFT gamification. pic.twitter.com/kGhMPaWCi0
— Mishaal Rahman (@MishaalRahman) July 12, 2023
Google Play banned crypto mining apps from its store in 2018 and removed the Bitcoin Blast video game for “deceptive practices” in 2020. Apple’s App Store stated in October that NFTs purchased outside of the App Store cannot offer any special benefits to users in a game, or else the game will be banned. In addition, NFTs sold through Apple’s App Store version of a game must pay a 30% fee to Apple.
These actions and statements caused many industry experts to believe that mobile NFT games were under attack. However, the new policy from Google Play makes clear that these games are welcome on Android devices, as long as they follow a few rules.
Related: Uniswap says its mobile app is “out of Apple jail” and live in most countries
According to the post, developers must clearly state if a game allows users to earn or buy NFTs or cryptocurrencies. In addition, game developers are not allowed to “glamorize any potential earning from playing or trading activities,” nor can they sell loot boxes or otherwise allow players to gamble.
As long as they abide by these rules, games can offer tokenized assets as part of the gaming experience, including by “reimagining traditional games with user-owned content,” the post said. Google Play indicated that it set these guidelines in cooperation with Web3 gaming leaders and will “continue to engage with developers to understand their challenges and opportunities.”
Web3 games have also been banned by the world’s largest PC game distributor, Steam. However, Steam’s competitor, Epic Games, launched NFT card game Gods Unchained in its store on June 22.
In a win for crypto app developers, incoming EU laws will force Apple to permit alternative app stores and apps without the need to go through its App Store.
Tech giant Apple is gearing up to permit third-party app stores on its devices to comply with new anti-monopolistic requirements from the European Union (EU), which could be seen as a huge win for crypto and NFT app developers, at least in Europe.
Under the new rules, European customers would be able to download alternative app marketplaces outside of Apple’s proprietary App Store, thus allowing them to download apps that skirt Apple’s 30% commissions and app restrictions according to a Dec. 13 Bloomberg report citing those familiar with the matter.
Currently, Apple has stringent rules for NFT apps that practically force users to go through in-app purchases subject to Apple’s 30% commission, while apps are not permitted to support cryptocurrency payments.
Apple’s enforcement of its rule led to a block of Coinbase’s self-custody wallet app update on Dec. 1 as Apple wanted to “collect 30% of the gas fee” through in-app purchases, something that is “clearly not possible” according to Coinbase.
It then claimed Apple wanted the wallet to disable NFT transactions if they couldn’t be done through its in-app purchase system.
Alex Salnikov, co-founder of NFT marketplace Rarible tweeted on Dec. 13 in response to the news that a “crypto app store” could be built and would be a “great candidate” for a venture capital-backed startup.
Apple’s move to open its ecosystem is in response to the EU’s Digital Markets Act aiming to regulate so-called “gatekeepers” and ensure platforms behave fairly with part of the measures allowing “third parties to inter-operate with the gatekeeper’s own services.”
It will be applicable starting May 2023 with businesses needing to fully comply by 2024.
Apple hasn’t decided if it will comply with a part of the Act allowing developers to install alternative payment systems within apps that don’t involve Apple. if it does comply, it could open up payment systems that allow cryptocurrencies.
Related: LBRY alleges Apple forced it to censor certain terms amid COVID-19 pandemic
Under consideration by the tech giant is mandating security requirements for software outside of its store, such as verification from Apple, in a bid to protect users against unsafe apps.
The changes to Apple’s closed ecosystem would apply only within the EU, other regions would need to pass similar laws such as the proposed Open App Markets Act in the United States Congress from Senators Marsha Blackburn and Richard Blumenthal.
The rules, which include enormous fees for cryptocurrency users, set the company up for a fight it will be unable to win.
Giant companies like Apple have made a fortune by centralizing their powers and profits and expanding their product and services network to be a part of people’s lives in as many ways as they can. Until recently, however, Apple had also demonstrated an ability to tunnel-focus its efforts to stay relevant and up to date with what consumers wanted, what mattered to them and what they needed most from the tech giants they rely on. It seems that this is not strictly true anymore, and that is a real shame.
In its updated App Store guidelines unveiled on Oct. 24, Apple announced that crypto exchange applications “may facilitate transactions or transmissions of cryptocurrency on an approved exchange” only “in countries or regions where the app has appropriate licensing and permissions to provide a cryptocurrency exchange.”
Additionally, any further payments needed to unlock extra features will need to be made with “in-app purchase currencies,” as developer 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.”
This is aimed at ensuring “a safe experience for users” and a chance for developers “to be successful,” Apple claims, but I disagree. It’s clear to see that this is just another clever trick Apple is using to keep all the profits it can make; a particularly interesting move, as it pertains to nonfungible token (NFT) technology and Web3 games, which are soaring in popularity.
Related: Nodes are going to dethrone tech giants — from Apple to Google
In a classic Apple move, the tech giant is attempting to control the “walled garden” it has spent decades building around its technology to prevent being challenged “over what software can land on its iPhones and Macs and what that software can do.”
But, cracks in the iron fence may be beginning to show.
Apple has been blocking various features in crypto apps for some time as well. https://t.co/4WGLAgS48i
— Brian Armstrong (@brian_armstrong) October 28, 2022
In May, the European Commission “charged Apple with abusing its payment dominance” in regard to Apple Pay practices, as it remains the only contactless option available for mobile payments on iPhone and iPad devices. And, as a 30% usage fee applies to any app utilizing the App Store’s in-app purchase function, Apple is no stranger to wanting to keep money in its ecosystem and take a cut out of everything that touches its prized flagship products.
But, when it comes to crypto technology and related Web3 products, they are decentralized, which means Apple would have no real way of taking a cut out of them.
To me, the updated App Store guidelines look like a desperate attempt at threatening competitors and protecting its monopoly. After all, some bigger cracks may be showing, and Apple might be more worried than it probably wants you to know.
As Cointelegraph recently reported, tech talent is migrating more and more to Web3 while tech giants like Apple, Google and Netflix undergo layoffs and hiring freezes. Data looking at the impact of the current economic downturn tells us that 700 tech startups have experienced layoffs within the last year, “impacting at least 93,519 employees globally,” in a move that resulted in an “overwhelming amount of talent flocking to early-stage Web3 companies.”
Related: Facebook and Twitter will soon be obsolete thanks to blockchain technology
As Web3 looms, is Apple doomed? Of course not. Although it’s no longer the world’s most valuable company (Saudi Aramco overtook it in market capitalization in May), the iPhone maker is still a colossal presence in all of our daily lives — that is not going to change anytime soon.
What it might need to do, however, is re-think its stance on how it’s going to work with the technologies of the future. As angel investor Daniel Mason pointed out on Twitter, a main takeaway from the updated App Store guidelines is Apple “demonstrating a desire to work with crypto apps (especially games) but on its terms,” which is an extremely Apple-like position.
Today, Apple released new rules for crypto apps (especially web3 games) in the App Store.
— Daniel Mason (@dgmason) October 24, 2022
Apple's stance on NFTs, crypto, and payments will have a massive effect on the industry.
A featuring critical points, my takeaways, and winners/losers based on initial reading:
But as long as it antagonizes major crypto and NFT exchanges like OpenSea and Magic Eden, payment ramps like Moonpay and “anyone trying to compete with them for either primary or secondary NFT purchases,” as it seems to be prepared to do, Apple may just be prolonging a fight that Web3 is destined to win.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Apple has published rules for NFTs for the first time while clarifying rules around cryptocurrency payments and crypto exchanges.
Technology heavyweight Apple has clarified its App Store rules around nonfungible tokens (NFTs) and cryptocurrency exchanges marking the first time its codified specific rules for NFTs.
The new rules confirm how NFT purchases will be taxed and what they can and can't be used for, while also clarifying rules around when a crypto exchange app can be listed.
The Oct. 24 update to its App Store guidelines saw language added that allows fo in-app purchases of NFTs, but bars any NFTs acquired elsewhere to be used for anything other than viewing.
It also allows applications to use in-app purchases to “sell and sell services” related to NFTs such as “minting, listing, and transferring.”
However, the tech company is seemingly double-downing on its NFT “Apple tax” — which lumps in-app NFT purchases into its standard 30% commission rate on all purchases — by making sure all NFT purchases are conducted in-app.
Apps won't be allowed to include “buttons, external links, or other calls to action” which could give users a way to circumvent app-store commissions when purchasing NFTs. It also prevents apps from using mechanisms "such as [...] QR codes, cryptocurrencies, and cryptocurrency wallets” which could be used to unlock content or functionality within an app.
The rules come despite the company facing criticism for applying its 30% commission on NFT sales conducted through NFT marketplace apps such as OpenSea or Magic Eden, a move that’s been marked as “grotesquely overpriced” when compared to the average 2.5% commissions on NFT purchases.
Magic Eden said it removed its service from the App Store after learning of the policy and other NFT marketplaces have scaled back their application functionality with users only able to browse and view their owned NFTs.
Apple's guidelines have also ruled out using crypto for in-app purchases, allowing only fiat currency purchases with a “valid payment method” such as debit or credit cards.
Related: Nodes are going to dethrone tech giants — from Apple to Google
The new guidelines make no changes to Apple’s existing policy on cryptocurrency trading apps put forward by exchanges such as Binance and Coinbase where trades are not subject to the 30% “Apple tax”.
However, new language was added to clarify that crypto 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.”
Novel can deploy smart contracts over the NFT collections and make them available to users for purchases on the Shopify storefront.
Major global e-commerce platform Shopify announced a partnership with Novel, a no-code Web3 commerce platform, to make Web3 technologies accessible and approachable for all merchants.
As part of the partnership, Novel launched an app on the Shopify App Store, which equips existing merchants on Shopify with tools to experience Web3 innovation in ecommerce without any technical knowledge or time and monetary commitments.
The Novel Shopify app delivers two primary features: minting and distribution, and utility. The minting and distribution feature allows users to generate art for a new nonfungible token (NFT) collection or upload an existing NFT collection. Novel can then deploy smart contracts over the collection and make them available to users for purchase on the Shopify storefront.
Once an NFT is purchased, Novel will automate the currency bridge and create a corresponding crypto wallet for the customers. On the utility side, Novel allows merchants, including brands and creators, to enable token-based utility on their Shopify storefronts, including token-gated products, URLs and discounts, cross-chain gating on Solana (SOL), Ethereum and Polygon (MATIC), ERC-20 gating and more.
Sharing the details, Roger Beaman, CEO and co-founder of Novel stated:
“By integrating with Shopify, we’re able to leverage the industry-leading ecommerce platform they have built to equip all Shopify merchants with the tools they need to enter the Web3 commerce space.”
As an all-in-one Web3 tool on Shopify, the Novel app also powers token-gating for retailers to add use cases to their NFT collections.
Related: Shopify unveils tokengated commerce as part of new connect-to-consumer experience
Cointelegraph released a new feature allowing users to convert articles into NFTs. With this feature release, Cointelegraph created the first decentralized catalog of news wherein users can convert published articles into mintable NFTs via the Cointelegraph Historical collection.
Similar to collecting old newspapers for saving sentimental headlines, Cointelegraph allows readers to own and relive milestones in crypto, including Bitcoin’s Taproot upgrade and El Salvador adopting BTC as legal tender.
While the commission is standard for Apple, some have expressed their displeasure at the company's “grotesquely overpriced” cut of sales.
Non-fungible token (NFT) app developers and others have balked at a decision by tech giant Apple to impose a 30% commission on NFTs sold through apps on its marketplace, effectively putting NFT purchases in the same boat as regular in-app purchases.
According to a Friday report from The Information, the smartphone company is now allowing NFTs to be bought and sold through apps listed on its marketplace but imposes its standard commission on in-app purchases of 30% — similar to that imposed by Android’s app store Google Play.
The commission rate has however been slammed by some for being “grotesquely overpriced” — particularly when compared to standard NFT marketplace commissions, which are around 2.5%.
Tech blogger Florian Mueller called Apple’s “app tax” on NFT sales “abusive but consistent," while Epic Games CEO Tim Sweeney tweeted that Apple is “crushing” another nascent technology that “could rival its grotesquely overpriced in-app payment service.”
Now Apple is killing all NFT app businesses it can’t tax, crushing another nascent technology that could rival its grotesquely overpriced in-app payment service. Apple must be stopped. https://t.co/4KChp6jtFZ
— Tim Sweeney (@TimSweeneyEpic) September 23, 2022
The report noted that popular Solana (SOL) NFT market Magic Eden withdrew its service from the App Store after learning of the policy, even after Apple offered to lower its commission to 15%, though the app continues to be listed on the app store at the time of writing.
Meanwhile, other NFT marketplaces on the App Store have reportedly limited functionality due to the hefty commissions. There is also the added challenge of being forced to conduct transactions in U.S. dollars rather than cryptocurrency, which could prove risky given the volatility of cryptocurrency markets.
Related: Throw your Bored Apes in the trash
Others have seen the positive side of Apple's NFT acceptance. Gabriel Leydon CEO of Web3 game developer Limit Break said the move “could put an ETH wallet in every single mobile game onboarding 1B+ players!” adding he would “HAPPILY give Apple a 30% cut of a free NFT.”
It’s not the first time companies have battled with Apple regarding its commissions, Epic Games has filed legal proceedings after its flagship game Fortnite was delisted from the App Store in Aug. 2020 after the publisher attempted to sell in-game purchases which skirted Apple’s fees.
NFT marketplace apps on the app store currently include OpenSea, Rarible, Magic Eden and marketplaces in crypto trading apps include Binance, Crypto.com and Coinbase Wallet.
Fake crypto apps appear to be part of an ongoing game of whack-a-mole with app store operators.
The Federal Bureau of Investigation (FBI) has issued a public warning about fraudulent cryptocurrency apps, which have swindled U.S. investors out of an estimated $42.7 million so far.
According to an advisory published on July 18 by the securities and intelligence agency, cybercriminals have created apps using the same logos and identifying information as legitimate crypto companies to defraud investors. The FBI noted that 244 people had already fallen victim to these fake apps.
One case saw cyber criminals convincing victims to download an app that used the same logo as an actual U.S. financial institution, encouraging them to deposit cryptocurrency into wallets purportedly related to their accounts.
When victims attempted to withdraw from the app, they would be asked to pay taxes on their withdrawals. However, this was just another ruse to part more funds from victims, as even if they made the payments, the withdrawals would continue to be unavailable.
Around $3.7 million was defrauded from 28 victims between December 2021 and May 2022, said the FBI.
Another similar operation saw cybercriminals operating under the company name “YiBit”, defrauding at least four victims of around $5.5 million between October 2021 and May 2022, using a similar method of deceit.
A third case involved criminals operating under the name “Supay” in November 2021. They defrauded two victims by encouraging them to deposit cryptocurrency into their wallets on the app, which would then be frozen unless more funds were deposited.
Warnings about fraudulent apps have also made the rounds on crypto Twitter.
One user said a friend recently fell victim to a scam that started on the online messenger service Whatsapp which encouraged the victim to download a fake crypto app and load funds into the app’s wallet. A week later, the crypto app vanished.
Don't get scammed. I recently had a friend fall for a #WhatsApp scam where they had her download a fake #crypto app, put some money in, and about a week later the app is gone and is NOWHERE to be found. Luckily she didn't follow "instructions" and add more.
— Sarvasatvananda (Aaron) (@crypto_or_die) July 17, 2022
Another user says they have fallen victim to a fake Ledger Live crypto wallet app, reportedly called “Ledger Live Plus,” in the Microsoft app store. The user claims the fraudulent app has already stolen $20,000 from him.
Earlier this year, cybersecurity firm ESET uncovered a “sophisticated scheme” that would distribute Trojan applications disguised as popular cryptocurrency wallets. These applications would then attempt to steal crypto assets from their victims.
Related: More than $4.7M stolen in Uniswap fake token phishing attack
Last year, a scam cryptocurrency app dressed up as a mobile Trezor app on Apple’s App Store reportedly led to one user losing $600,000 in Bitcoin at the time.
A report from the United States Federal Trade Commission (FTC) in June 2022 found that as much as $1 billion in crypto has been lost to scammers since 2021, with nearly half of all crypto-related scams originating from social media platforms.
The FBI has recommended crypto investors be wary of unsolicited requests to download investment apps, verify an app (and the company) is legitimate, and treat apps with limited and/or broken functionality “with skepticism.”
The CEO of the Nasdaq-listed cryptocurrency exchange Coinbase, Brian Armstrong, says Apple has not played nice with crypto, noting that the tech giant has banned a bunch of crypto features in its App Store. Apple’s anti-crypto policy raises “potential antitrust issues,” said the Coinbase executive. Potential Antitrust Issues Coinbase CEO Brian Armstrong talked about Apple’s […]