NFT Tax, Fiat Transactions
Apple’s announcement that it will allow NFT apps on the Apple App Store should have been good news. This finally answers a question that has been bothering people for a while. But there is a catch: Apple has decided to charge a 30% sales commission and requires all purchases to be made in-app using fiat currency.
Non-Fungible Token (NFT) exchanges are being controlled and could be shut down, which sets up a showdown with a powerful corporate rulemaker in the technology sector.
Because of this news, a lot of NFT developers have said they won’t put their apps on the iOS App Store. Sidney Zhang, one of the co-founders of Magic Eden, told The Information that the company has never allowed in-app sales or purchases because Apple has transaction fees that are too high.
After Apple announced its new commission, the most popular NFT marketplace for Solana, Magic Eden, said it would pull its app from the App Store. After this was announced, Apple said it would cut its commission on NFT marketplaces with less than 100 participants from 20% to 10%. Several well-known people in the Web3 community, like Epic Games CEO Tim Sweeney, have said that Apple’s plans will kill the market for apps that are made specifically for iOS.
The NFT community as a whole was not happy with the decision to charge a 30% fee on all trades. At NFT marketplaces like OpenSea and Magic Eden, the commission rates range from 2.5% to 5%. Owners of projects and games see the 30% commission as bringing Web2 practices into the Web3 space, especially since NFT prices have been going down recently.
People like Gabriel Leydon, CEO of Limit Break, who want more people to use digital assets and Web3 wallets, have praised Apple’s decision.