Apple Bans Cryptocurrency Mining Apps

Tech giant Apple (NASDAQ:AAPL) has updated the developer guidelines for the App Store in its own efforts to crack down on the cryptocurrency market.

According to the guidelines, the new rules state that apps including those with third party ads, can’t run unrelated background processes–which includes cryptocurrency mining.

Bitcoin mining is notoriously known for using a lot of power.  Apple said in its updated guidelines that developers should be designing apps to “use power efficiently.”

“Apps should not rapidly drain battery, generate excess heat, or put unnecessary strain on device resources,” Apple said.

This isn’t the first time the tech company has gone head-to-head against cryptocurrencies. Apple Insider first reported on the updated guidelines on Monday (June 11), and noted Apple removed Coinbase, among other crypto-related apps, from its store in 2013 and 2014, stating an unnamed “unresolved issue.”

This resulted in the original set of developer guidelines and, according to Apple Insider, Coinbase then returned to the App Store and eventually topped the list of apps available in the App Store for a brief period in 2017.

Apple’s updated guidelines isn’t all bad news for cryptocurrency enthusiasts. The guidelines state that in terms of crypto wallets, apps can “facilitate virtual currency storage, provided they are offered by developers enrolled as an organization.

In terms of cryptocurrency mining, Apple’s guidelines state that apps can’t mine for cryptocurrencies unless it is done off the device, such as cloud-based mining. Meanwhile, apps can facilitate transactions or transmissions of cryptocurrencies “on an approved exchange, provided they are offered by the exchange itself.”

Apple’s guidelines on initial coin offerings (ICOs) state that apps facilitating ICOs, cryptocurrency futures trading and other crypto-securities should come from established banks, securities firms, futures commission merchants, or other approved financial institutions and “must comply with all applicable law.”

The last point in Apple’s updated guidelines as it relates to cryptocurrencies states that cryptocurrency apps can’t offer cryptocurrencies for completed tasks and examples downloading other apps, encouraging others to download said apps, and posting to social networks in efforts to encourage downloading.

Bitcoin dipped to a two-month low of US$6,647.33 on Monday following the Coinrail hack that happened on Sunday (June 10). The dip continued into Tuesday (June 12), dropping 4.21 percent over a 24 hour period to $6,5556.56 as of 7:32 p.m., EST according to data from Coinmarketcap.com.

Meanwhile shares of Apple were up 0.55 percent over a one-day trading period to US$192.28 as of Tuesday’s market close, but inched up slightly higher by 0.08 percent to $192.36 in after hours trading.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.