Apple App Store guidelines update allows virtual currencies

Apple issued an update

Apple issued an update to it’s App Store Review Guidelines. The update opens doors for Bitcoin related Apps to be added to the App Store. Since the ban of the Blockchain app from the App store, Apple has been known to be strictly against Bitcoin related Apps, however following the Worldwide Developer’s Conference (WWDC) Apple issued an update that can be reviewed here. Under the Purchasing and currencies section in the App Store guidelines and update was issued related to virtual currencies:

Apps may facilitate transmission of approved virtual currencies provided that they do so in compliance with all state and federal laws for the territories in which the app functions

What does that mean

It is still unclear whether Apple will allow Bitcoin apps in it’s App Store but there is definately a chance that reputable Bitcoin companies that have active KYC regulations will be able to place their mobile apps on the market. For example, Coinbase and Bitstamp are both very reputable companies who verify their customer’s identities and keep detailed logs of all the transactions, because they follow federal laws in their respective territories they their apps will follow the issued guidelines and should be accepted in the App Store. However, certain exchanges such as Cryptsy or BTC-E who do not have active KYC regulations and are not transparent from the corporate point of view would not pass Apple’s App Store guidelines and thus would not be able to place their Apps on the App Store.

In other words with the new update Apple will only accept apps that handle bitcoin transmission as long as they comply with all the state and federal laws. Don’t get it wrong, apps that show the price of Bitcoin and ones that do not facilitate Bitcoin transactions are still allowed on the App Store, an example of such apps are Coinbits – a Bitcoin price ticker and news faucet, and ZeroBlock, which is also a Bitcoin price ticker and calculator.

It seems that Apple decided to follow Google’s direction with its App Store, to allow Bitcoin apps but with much caution and regulation.

 Effect on the market

We cannot say for sure how the update from Apple has affected Bitcoin but we can speculate. Bitcoin had a rough time where it was stuck in the low $600 during the past 2 days, However, now the price of Bitcoin is at $650. The news from Apple and the lack of bad news is definately helping Bitcoin. As of 6/2/14 Bitcoin is following an uptrend with strong volume. Lets also take a look at Apple’s stock to see how it has been doing since the announcement:

The above two pictures show a 5 day and a 6 month spread of Apple’s stock. We see a general uptrend in Apple’s stock in the last month. It seems that Apple is trying to satisfy the short term investors with its latest moves, first it buys Beats by Dre and now its trying to tap into the Bitcoin market to further increase its stock.