Apple, Bitcoin and Gliph

The call from Apple Worldwide Developer Relations came just before Thanksgiving last year. Without much elaboration as to why, Apple told us the Gliph iOS app would need to remove the ability to send Bitcoin or risk being pulled from the App Store.

That event kicked off months of publicity in reaction to our blog post on the state of Bitcoin in the App Store and Google Play. The press feasted on the controversy of Apple’s behavior and Gliph became something of a poster-child for Bitcoin’s fight for mainstream acceptance.

If you wiped away the media hype, and focused on the appeal letter we made public, you would find the real reason why Apple should not have made that choice in the first place:

“By inhibiting the creation of Bitcoin apps Apple holds innovation back from the world. We are witnessing the dawn of a massive technological innovation. The potential impact of virtual currencies stretches further than any company or platform.”

At Gliph, we feel Bitcoin is a transformative technology. We also love developing software for the iOS platform. It was challenging to understand how this company we respected deeply would rule against Gliph and Bitcoin.

When Apple unveiled updates to its App Store Review Guidelines to allow “approved virtual currencies” at WWDC 2014, we became optimistic Apple had thoughtfully considered the language of our appeal.

Gliph’s new approval confirms Apple is now allowing apps featuring Bitcoin transactions in the App Store. We’re proud to have taken the lead in pushing for this important change.

For more information about the new version of Gliph for iOS, please check out this blog entry.

The update, (version 1.90), is part of a larger release that includes an a new Gliph Android application and the introduction of a brand new Gliph Desktop Web app.

This is also Gliph’s first iOS release using ReactiveCocoa and Gliph’s new and improved backend system. You can read more about that effort here.  OK, on to the updates!

Bitcoin is Back

This is such important news, it has its own blog post. But let’s dig into exactly what the Gliph iOS App can do with Bitcoin. With the new Gliph iOS app you can:

• Attach a Coinbase or Blockchain Bitcoin wallet to your Gliph account
• View balance wallet and past transactions performed using Gliph
• Send Bitcoin to any other Gliph user that also has a Bitcoin wallet attached
• Send Bitcoin to any QR code Bitcoin wallet address using a new QR code scanner

Support for Secure Group Messaging

Gliph now supports secure group messaging! That’s right, you can now assemble and manage your own groups on Gliph! In this version of the iOS app, you can participate in groups, though group creation needs to be done on the web.

For more information about secure Group Messaging on Gliph please see this post.

Profile and Group Photos

You can now add a Profile Photo facet as part of your Gliph profile. It has the same privacy options as other Gliph facets, like phone number or your name. You can have it be Public, Private or Private and shared with specific people or groups.

All new users are offered the ability to set a Profile Photo, but you can do this now by visiting the menu and choosing Profile.

Refreshed Activity View

The Activity View has been refreshed with a new message unread indicator and the display of Profile photos. The view should also refresh more quickly to accurately reflect the read status of the messages there.

Coming Soon

There are a few things we left out of 1.90 to get it out the door for you. This includes message delay and timed expiration. We also weren’t able to get the complete Create Group capability into this version, but you can still do that using the mobile web.  We plan to fill in these gaps, and continue to refine this experience over the next few releases.

Purchasing and Currencies
11.17 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

This is a new item in section 11, Purchasing and currencies that was not in the last revision of the guidelines.

In addition to this change, the standard program agreement for iOS has a new additional term that is likely relevant to applications interested in offering Bitcoin functionality:

Use of the In-App Purchase API
2.2 You may not enable end-users to purchase Currency of any kind through the In-App Purchase API, including but not limited to any Currency for exchange, gifting, redemption, transfer, trading or use in purchasing or obtaining anything within or outside of Your Application.

“Currency” means any form of currency, points, credits, resources, content or other items or units recognized by a group of individuals or entities as representing a particular value and that can be transferred or circulated as a medium of exchange.”

Let’s dive into some analysis:

Apple Recognizes Virtual Currencies Exist
The new language in 11.17 suggests that Apple is now keeping a list of “approved virtual currencies.” Previously, there was no official indication that Apple tracked virtual currencies at all. In fact, references to virtual currencies were previously believed to refer only to in-game currencies like virtual gold. (See Rules on Bitcoin in Google Play and the Apple App Store… in our previous post on Apple and Bitcoin apps)

That recognition does not mean Bitcoin is on Apple’s special list yet.

It might be reasonable to assume that 11.17 also refers to in-game gold, except for the qualifying language in the updated iOS Developer Program License Agreement. In that agreement, “Currency” is now defined as “units recognized by a group of individuals or entities representing a particular value that can be transferred or circulated as a medium of exchange.”

Jurisdiction Is Important
In 11.7, Apple has specifically said transmission of approved virtual currencies may occur so long as they are in compliance with all state and federal laws for the territories the app is sold in.  This suggests that the moment formal state acknowledgement of virtual currencies exists, app developers may allow users in those areas to transmit virtual currencies.

As exciting as that may sound, so far Apple has treated their interpretation legislation affecting the legality of Bitcoin as proprietary.  For example, if you spoke with a representative from Apple Worldwide Developer relations and asked them “is sending Bitcoin legal in the United States?” they would respond that this was “proprietary business information of Apple.”

It seems even though there is a framework for the transmission of virtual currencies like Bitcoin, Apple’s interpretation of law may be critical as to whether it is allowed.

Getting Bitcoin Apps into the App Store
It is unclear immediately how this affects successful submission of Bitcoin-transmitting applications into the app store. Apple generally reviews applications as their submitted, with rule changes, previously submitted applications may now qualify and be approved.

No Selling Bitcoin via In-App Purchases
Aside from providing a definition of “currency,” 2.2 also specifically means App Developers may not use the App Store In-App purchasing to purchase currency.  This makes sense, as it would put Apple between buyers and sellers during a currency exchange.

In the United states, the transmission or exchange of money may require special registration as a money transmitter. Given its behavior toward Bitcoin in the past, it makes sense that Apple would not want the responsibility of being involved in these types of transactions.

Gliph’s Bitcoin Transmission Capability
Gliph has been on the front line of getting Bitcoin sending into the App Store. Our company maintains that it is acting within existing state and federal regulations around the transmission of Bitcoin currency. As a result, we will continue to look to Apple for allowing the ability for our users to transmit Bitcoin between each other in our iOS application.

Download Gliph for iOS Today.