In a nutshell
- Apple has altered its iOS app developer guidelines due to a court verdict, loosening restrictions that previously hampered the crypto industry.
- Developers in the U.S. are now permitted to provide external payment options and even facilitate the purchase of NFTs via secondary marketplaces.
- Some limitations regarding cryptocurrency remain, such as the bans on reward tokens, initial coin offerings, and device mining.
Witness the evolution of the scene
App Store on iOS loosens regulations for NFT and cryptocurrency applications in response to antitrust decision
The recent triumph of Epic Games' antitrust lawsuit against Apple has paved the way for a more crypto-friendly iOS environment. Apple eased its restrictions on developers offering non-standard payment methods and digital collectibles, as per the updated iOS App Store review guidelines.
This decision followed a U.S. District Judge's ruling that Apple had intentionally violated the court's 2021 injunction. With the new federal court mandate, Apple can no longer levy fees on external purchases or restrict developers from directing users to external websites.
In a correspondence with developers, Apple communicated that U.S. apps are now authorized to display NFT collections owned by others without any restrictions. Additionally, the prohibition on encouraging users to use modes of payment other than in-app purchases has been lifted for U.S. storefronts.
This relaxation could potentially kickstart a 'generational golden consumer crypto bull run,' as suggested by Wojciech Kulikowki, a software engineer at Farcaster. The flexibility may encourage innovation in crypto-native mobile apps, which were previously often blocked from the Apple App Store.
Although the guidelines now allow for more NFT marketplace functionality, the iOS apps lack the ability to transact purchases within the app. Some companies like Magic Eden have circumvented this issue by incorporating a browser within their apps for in-app crypto purchases, replicating the self-custodial wallets offered by firms like MetaMask, Coinbase, and Uniswap.
While the changes significantly benefit U.S. developers, there are still strict restrictions when it comes to cryptocurrencies. Crypto apps cannot utilize Apple’s payment infrastructure for cryptocurrency transactions, offer reward tokens, facilitate initial coin offerings, or allow cryptocurrency mining on user devices.
Google adjusted its Google Play Store policies in 2023, permitting NFTs to unlock in-app content regardless of where they were purchased. Similar to Epic Games' platform, game developers were required to clearly disclose if their experiences were blockchain-based.
Apple has yet to provide a comment regarding these changes.
Edited by Andrew Hayward
Enrichment Insights:
- With these updates, U.S.-based developers can link directly to external websites for cryptocurrency transactions and NFT purchases, thereby avoiding Apple’s 30% commission fees. However, non-U.S. storefronts still face these restrictions.
- Developers can now display NFT collections owned by others and enable users to buy NFTs via third-party marketplaces (e.g., OpenSea) through external links within U.S. apps.
- Developers can now also restrict app features using NFTs (e.g., access tiers), a practice previously forbidden by Apple.
- The changes primarily allow for lower costs for developers (by avoiding Apple's fees) and improved UX for NFT purchases, eliminating the need to redirect users to web browsers. However, fiat-to-crypto onboarding (e.g., KYC processes) remains a challenge as Apple has not yet streamlined this aspect.
- The recent update in Apple's iOS App Store review guidelines is a result of the triumph of Epic Games' antitrust lawsuit, making the iOS environment more crypto-friendly.
- The new federal court mandate has led Apple to ease restrictions on developers offering non-standard payment methods and digital collectibles.
- With the updated guidelines, U.S. apps can now display NFT collections owned by others without any restrictions.
- The prohibition on encouraging users to use modes of payment other than in-app purchases has been lifted for U.S. storefronts.
- Although these updates allow for more NFT marketplace functionality, crypto apps cannot utilize Apple’s payment infrastructure for cryptocurrency transactions.
- Some developers like Magic Eden have incorporated a browser within their apps for in-app crypto purchases to circumvent the lack of ability to transact purchases within the app.
- While the changes significantly benefit U.S. developers, cryptocurrency apps cannot offer reward tokens, facilitate initial coin offerings, or allow cryptocurrency mining on user devices.
- Google's Google Play Store policies in 2023 permitted NFTs to unlock in-app content regardless of where they were purchased, similar to Epic Games' platform.
- Developers can now restrict app features using NFTs, a practice previously forbidden by Apple, and can enable users to buy NFTs via third-party marketplaces through external links within U.S. apps.
