Apple's removal of apps from the App Store sparks controversy for blockchain startups

Rage Review : Last month, Apple asked Jaxx to remove a digital currency, Dash (formerly Darkcoin), because it was not on the list of "approved currencies". The 2014 policy disclosed a series of digital currencies that were "approved" by Apple, including Bitcoin, Litecoin and Ethereum. ShapeShift is also preparing to include six digital currencies in its application. Both Jaxx and ShapeShift expressed dissatisfaction with this move and Apple's lack of transparency. Some speculated that this was an anti-competitive measure taken by Apple, mainly to support its payment application Apple Pay.

Translation: Nicole

Apple appears to be becoming increasingly active in regulating digital currency apps.

In recent weeks, the Cupertino company has restricted (at least) two separate apps from its Apple online store, a move that has sparked speculation but no official announcement. This was reportedly caused by a series of cryptocurrencies that Apple 'approved', a policy that was due to Apple's public approval of apps using the technology in a 2014 policy.

Initially seen as a progressive move by the technology company, the move has drawn criticism in light of recent problems experienced by blockchain startups, including digital currency wallet Jaxx and digital currency exchange ShapeShift, both of which had to remove their iOS apps at the request of Apple.

Last month, Apple reportedly asked Jaxx to remove the digital currency Dash (formerly Darkcoin) because it was not on the list of ‘approved currencies’ that include Bitcoin, Litecoin and Ethereum.

Jaxx is set to remove Dash from its listing later this month, and recently revealed that Apple had rejected its request to add the digital currency Ethereum Classic. Similarly, news this week revealed that ShapeShift’s iOS app had been removed from the Apple App Store, a removal that was later announced on social media.

ShapeShift told CoinDesk that this puts it in conflict with the list of approved currencies because it provides trading services for other unapproved blockchain tokens. ShapeShift CEO Erik Voorhees said his company is preparing to add six digital currencies to its app.

Apple approved services that use bitcoin, litecoin, dogecoin, ripple and ethereum, as well as tokens associated with the now-defunct DAO project, according to the companies.

However, the company has not officially announced its stance on the app. According to rumors, there are other digital currencies that have been approved by Apple, but the names of the currencies have not been confirmed at the time of press time.

Apple did not respond to a request for comment.

Lack of transparency

As expected, both Jaxx and ShapeShift expressed dissatisfaction with the move, as well as Apple’s perceived lack of transparency.

Jaxx CEO Anthony Di Iorio said in an interview that he expressed a desire for more transparency in conversations with representatives.

Anthony Di Iorio

He told CoinDesk:

"If they clarify these things in advance, it will be much simpler going forward. Not clarifying them will only lead to a lot of speculation."

While Di Iorio believes Apple has legitimate reasons for limiting certain digital currencies, Voorhees believes the choice of a particular currency was arbitrary.

Voorhees said:

“I strongly recommend that Apple not pick and choose digital assets for its users. That’s like telling users which music to download or which website to visit.”

The statement echoes a broader blockchain community that is increasingly accepting that a variety of different digital assets will be created.

At the same time, there are still many concerns about the current various digital currencies, such as the maturity of the projects, the prevalence of scams and the lack of innovation.

Echoes of 2014

In some ways, last month’s developments were like a throwback to two years ago, when Apple and bitcoin users began to disagree.

In early 2014, Apple’s decision to remove blockchain-developed Bitcoin wallet apps from its online store quickly made headlines. This happened a few months after Apple removed Coinbase from its online store.

At the time, it was an anti-competitive move by Apple to support its payment app Apple Pay (it could be argued that public anger against Apple reached a critical juncture, with various viral videos showing Bitcoin enthusiasts happily vandalizing Apple products).

Finally, after updating its app development rules, Apple will resume accepting Bitcoin wallet applications. A month later, the blockchain wallet app returned to the Apple Store, and since then, other wallet services have also come online.

But even after the policy change, bitcoin adoption has hit a snag.

For example, in March 2015, a communications service called Wiper was removed from the iOS store in China because of its association with Bitcoin.

Looking for clues

Apple has not commented on its digital currency policy since the 2014 update, leaving observers to speculate on the drivers behind the recent move.

Jim Harper, a senior fellow at the Cato Institute and a former board member of the Bitcoin Foundation, said Apple may simply be bowing to regulatory pressure — or that Apple is still struggling to figure out its own digital currency policy.

Jim Harper

He told CoinDesk:

“Apple may have consumer protection or regulatory concerns, or the company may just be acting randomly. Even if the App Store is owned by a private, for-profit company, it is inherently bureaucratic.”

In some ways, the move is a reminder that, in the end, Apple has the final say over which apps are sold on its platform, regardless of any reasons the technology company has for restricting certain digital currencies.

Jerry Brito, executive director of Coin Center, said:

“As a consumer or developer, when you use a closed and permissioned ecosystem like Apple’s, you have to accept that there is a gateway.”

Brito said there are many other options for distributed wallet applications.

He told CoinDesk:

"Apple is very conservative when it comes to policing online content, but fortunately there are often open, permissioned sites that are difficult even for Apple to censor."