Apple Bans Cryptocurrency-Driven Mobile Applications

Apple Bans Cryptocurrency-Driven Mobile Applications

US technology giant Apple is prohibiting any crypto-mining applications which may be incorporated in its mobile products. 

In a recent update, Apple unveiled its expanded cryptocurrency guidelines focusing on the following points: wallets, mining, exchanges, initial coin offerings (ICOs), and rewards in the form of cryptocurrency. 

Earlier, Apple stated in its published guidelines that cryptocurrency exchanges and/or ICOs must adhere to all applicable federal and state laws. 

For wallets, apps may process digital currency storage “provided they are offered by developers enrolled as an organization.” 

The updated rules also said for exchanges, apps may process transactions or transmissions of cryptocurrency on any authorized bourses if the entity itself provides the service. 

“Apps facilitating Initial Coin Offerings (“ICOs”), cryptocurrency futures trading, and other crypto-securities or quasi-securities trading must come from established banks, securities firms, futures commission merchants (“FCM”), or other approved financial institutions and must comply with all applicable law,” it added. 

However, in mining, the tech firm prohibits the utilization of apps used on any Apple product from cryptocurrency mining unless it is done “off device.” 

Cryptocurrency-based apps are also barred from offering the currency for finishing tasks including downloading other apps, enticing other people to download that app, and posting to social media accounts, among others. 

The rationale behind Apple’s latest move is apparently anchored on its hardware compatibility. 

“Design your app to use power efficiently. Apps should not rapidly drain battery, generate excessive heat, or put unnecessary strain on device resources. Apps, including any third party advertisements displayed within them, may not run unrelated background processes, such as cryptocurrency mining,” Apple stated. 

Apple added available apps should never suggest or require rebooting the device or changing the system which is not related to the main functionality of that software. 

The American company revised its rules amid the pre-emptive measures it has implemented in the previous years to crack down on app development facilitating virtual currency trades. 

Four years ago, Apple took down an app by Blockchain which was poised towards purchasing and selling bitcoin, as well as storage on Apple devices. Prior to that, cyrptocurrency exchange Coinbase’s bitcoin wallet app was pulled down. But these apps marked its comeback to Apple’s online store. 

Comparisons of power consumption relative to mining efficiency are emerging amid expanding capabilities, raising woes over the prohibition sets for mining activities at present and in the future. 

Michael Casey, head of CoinDesk’s advisory board, expressed his frustration in a debate over whether or not bitcoin is an environmental disaster waiting to unfold. 

“If bitcoin is to be assessed as an alternative to fiat currencies, banks and traditional payment systems, then we must consider the costs of securing those systems – the physical bank branches, the armored cars, the staff employed in fraud detection, and so forth,” Casey said. 

He emphasized whilst a chunk of the legacy costs is earmarked to energy consumption, savings from these costs could be placed to notable initiatives including the construction of more renewable energy (RE) plants.

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