Former Apple employee talks about the company’s problematic attitude towards cryptocurrencies
Adding your app to the App Store is a daunting task, and for cryptocurrency-related companies, it’s a much tougher one. There are no coincidences here, as Apple has deliberately drafted the terms of use for its app shop in such a way that the interpretation of adding new items to it is left entirely in the hands of the company. This statement was made the day before by the former head of quality control at the App Store, Philip Shoemaker. According to him, Apple was almost “cool” to the crypto-sphere from the start and tried to avoid it at all costs. We tell you more about what’s going on.
Apple’s aversion to crypto-assets and decentralization in general became apparent last December. That’s when representatives of cryptocurrency exchange Coinbase announced that it was no longer possible to send NFTs in their app. The reason for this was Apple’s refusal to release an update without disabling the feature in question.
What’s particularly amusing is that the iPhone maker wanted to enforce gas charges on cryptocurrency transactions through in-app purchases. That way Apple would be able to charge its famous 30 per cent commission.
iPhone 14 Pro
However, transaction fees go to miners or validators on the blockchain, and there is no way around this feature. However, the company decided to go with the principle and banned this feature. Android smartphones, on the other hand, do not have this problem.
Why doesn’t Apple like cryptocurrencies?
Shoemaker originally drafted the terms of use for the App Store with Steve Jobs. Since his dismissal in 2016, the regulations on app add-ons have been drastically changed more than once, in a deliberately vague way. This, according to Shoemaker, has given Apple the discretion to interpret the ability to add different apps, as well as keeping crypto-related apps off the listings as much as possible. Here’s his rejoinder.
Apple has had a problem with cryptocurrencies since day one. They thought it was a pyramid scheme.
It's worth noting that, over time, company officials have clearly changed their attitudes. Still, in November 2021, Apple CEO Tim Cook confirmed the investment in cryptocurrencies. He also added that holding coins as part of a diversified portfolio makes sense. Here is a relevant video featuring the entrepreneur.
Philip Shoemaker, former head of App Store at Apple
Recall that Shoemaker served as head of the App Store division from 2009 to 2016. In an interview with Decrypt, he said that the original terms and conditions of the app shop were to be as straightforward as possible. He continues.
The aim was always to make the rules clearer over time, so that developers understand what they can and cannot do.
App Store
After all, getting into Apple or Google’s app shops could be the starting point for a major new company. And rejection is highly likely to lead to the collapse of a potentially promising start-up.
I have received hundreds of threats. People were following me to my car, they were sneaking into Apple’s office.
Following Shoemaker’s departure in 2016, Apple’s App Store strategy was rewritten by a legal team led by Phil Schiller, who is still head of the App Store division. Shoemaker suspects it is Schiller who is suspicious of the company’s overly negative attitude towards cryptocurrency-related apps.
They’ve had a major change, I’d say, just as I was leaving. The tone of things had changed significantly. They ended up making the rules even more vague and unclear. We need clear guidance, not half-measures.
App Store
However, even when Shoemaker was still in his position at Apple, the app of the popular US exchange Coinbase had already been blocked on the App Store. This happened in 2013, with an Apple spokesperson arguing that the ban violated the developers’ terms of service.
In 2020, Coinbase CEO Brian Armstrong tweeted that Apple had been “markedly restrictive and hostile to cryptocurrencies for years”. He explained that some features in the Coinbase app were blocked, but later deleted the tweet.
Coinbase CEO Brian Armstrong
In 2022, Apple updated the App Store rules to reflect the popularisation of unique non-exchangeable tokens. Here’s a quote from the updated rule item.
Applications may use in-app purchases to sell and trade unique tokenization services (NFTs) such as mining, listing and transactions. Apps can allow users to view their own NFTs, provided that ownership of the NFT does not unlock the capabilities or functionality of the app.
This means that Apple will charge a 30 per cent commission for purchasing NFTs through the app, and any NFTs that can be viewed through the app and are not purchased in the app cannot unlock any additional content or functionality in the app. Developers are also not allowed to offer users any workarounds in the app to circumvent the 30 per cent commission, such as clicking on an external link in a web browser.
Note that Apple's restrictive policy has also led to the release of the Solana Saga smartphone from the developers of the blockchain of the same name. Its main feature is a decentralised app shop. Most importantly: in-app purchases are made through a direct transaction between users and developers. There will be no intermediaries with gigantic commissions, so this should be an additional motivation for developers.
Solana co-founder Anatoly Yakovenko with the Saga smartphone
We believe that Apple's discreetly negative attitude towards the blockchain and digital asset industry is slowing the development of this niche. However, it also creates opportunities for other companies - and the Solana Saga smartphone is a case in point. So there is a chance that cryptocurrency enthusiasts can take advantage of the situation and make the right decisions to further popularise digital coins.
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