Virtual coins and cash out

>- Am I required to have a money transmitter license?

My opinion is that link does not apply to your example. You appear to be using tokens which are not the same thing as a virtual currency, so I think no, in this example you are not required to be a 'banking institution' etc.

>- Am I trespassing any of Appple regulations?

No way for anyone here to say yes or no. You'll only get the opinions of other devs. App Review isn't here, and they have the final say once they've seen your app, which may have other concerns, etc. You will need to submit your app and wait for feedback from that process.

Good luck.

I don't think you are violating any guidelines. You might point out to App Review that you believe you are operating consistent with Guideline 3.2.1 (vii) and (this might be important to explicitly point out) that your use of PayPal is only to allow a user to cash out the IAP-purchase (or gifted) Virtual Coins, not to purchase Virtual Coins which can only be done through IAP.

Thanks PBK for your reply.

Is there any other apps other than TikTok that do this? I have not seen many of you could make me some I would love to check them out and see how they execute this feature.

I’m having an issue getting our app approved with the same function. Our app allows users to buy “BLAAM COINS” they can gift to other creators and the gifted creator can cash out via PayPal. This is EXACTLY how TikTok works. But they keep rejecting our app for guideline section 3.1.1 which actually states: in app purchases can be used to purchase currency that users can “Tip” to the developer or other users.

Rejecting our app is a direct contradiction to this guideline. I’m escalating the matter hoping I can talk to someone on the phone.