American-leading cryptocurrency exchange Coinbase announced via a Twitter thread on Thursday that its transfer feature for non-fungible tokens (NFTs) on iOS devices has been disabled due to a dispute with tech company Apple.
Coinbase Disables NFT Transfer Feature
The American exchange mentioned that the issue began when Apple “blocked” its latest app release until it disabled the transfer feature on its NFT wallet.
Why did Apple make such a move? Apple requires gas fees used to conduct trading to pass through its in-app purchase system. Coinbase now argues that the tech giant demands a 30% commission on these gas fees used to facilitate NFT transactions.
Coinbase cites that this is “clearly not possible,” even if they try to comply.
“Apple’s proprietary In-App Purchase system does not support crypto so we couldn’t comply even if we tried. This is akin to Apple trying to take a cut of fees for every email that gets sent over open Internet protocols,” Coinbase added.
While giving no immediate solution to the issue, Coinbase acknowledged that iOS users would be impacted by the latest developments. The exchange noted that NFT holders using iOS devices on its platform would find it hard to send NFTs to other wallets or even gift others.
Apple’s Policy on NFT Trading
In October, Apple released its official guidelines that showed how NFTs and cryptocurrencies should be traded on iOS.
Within the guidelines, the company mandated that transactions involving these digital assets be conducted through its in-app purchase system.
Apple also features a 30% tax on gas fees for transactions. The imposed commission by the tech giant is likely to scare away several NFT projects and exchanges from utilizing the iOS ecosystem.
In the latest dispute between Coinbase and Apple, the crypto exchange noted that the stance taken by the tech firm is unlikely to support the growth of the crypto ecosystem.
“Apple has introduced new policies to protect their profits at the expense of consumer investment in NFTs and developer innovation across the crypto ecosystem,” the exchange stated.
