Apple Store FinTech and Crypto App Approval Requirements

Much has been written about the effort it takes to get a new app approved by the Apple App Store. With good reason, Apple’s rigorous approval process ensures quality and maintains the standards of its ecosystem. As Apple itself reports, in 2023 it “rejected more than 1.7 million app submissions because they did not meet the App Store’s rigorous privacy, security and content standards.”1 A Decode article on the main reasons for Apple’s rejection2 included the usual technology-related issues: the app is low quality; there are broken links; many bugs and crashes; etc.

But when it comes to submitting Fintech or crypto-related apps, there are additional licensing requirements that can cause significant delays. As has been widely reported, Apple revised theirs in October 2022 App review guidelines include new requirements for digital asset apps (emphasis added):

• Under Section 3.1, Paymentsthe following applies to “cryptocurrencies”:
  • 3.1.5 Cryptocurrencies:
    • (iii) Exchanges: Apps may facilitate cryptocurrency transactions or transmissions on an approved exchange, provided that they are only offered in countries or regions where the App has appropriate licenses and permissions to provide a cryptocurrency exchange.
• Likewise, below Section 3.2.2 “Unacceptable” notice:
  • (viii) Apps that facilitate binary options trading are not allowed on the App Store.…. Apps that facilitate trading in contracts for difference (CFDs) or other derivatives (e.g. FOREX) must be duly licensed in all jurisdictions where the service is available.

Proving that an app is “properly licensed” is relatively simple if the app provider actually has a license. The thorny issue arises when the app provider is unlicensed because it understands or has been advised (often by counsel) that (i) no license is required or (ii) users obtain services from third parties but does not provide them same these services.

Proving a negative is hard enough. But proving this in over 170 different global jurisdictions can be overwhelming.

The good news is that it can be done. But this requires careful advance planning, a network of global lawyers with good contacts with local regulators, time and patience. After going through this process multiple times, here are some tips to help you get your Fintech app approved:

• Keep it simple; the more complicated it is, the more likely it is to create delays and stimulate more questions;
• If your product offering requires a license and you are not licensed, be sure to partner with an appropriate, authorized entity that will, among other things, support your Apple application with a written statement regarding its licensed status;
• Carefully document your position regarding whether licensing is required (or not) in each country where your product is offered; AND
• Make sure you can block access to your app wherever licensing is required and you don’t have a license.

It’s not easy but there is hope; Fintechs and crypto providers MAY travel the long and winding road to Apple app approval.

Footnotes:

1 https://www.apple.com/newsroom/2024/05/app-store-stopped-over-7-billion-usd-in-potentially-fraudulent-transactions/#:~:text=As%20published%20in% 20the%20fourth,privacy%2C%20security%2C%20e%20content

2 https://decode.agency/article/app-store-rejection/

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