Coinbase disables NFT transfers in its iOS wallet, citing new AppStore policies

Crypto exchange Coinbase has disabled NFT transfers on its iOS wallet app because of a dispute with Apple over the company’s in-app purchase policy. The exchange said Apple is demanding it pay a 30% tax on gas fees used to transfer NFTs.

Crypto exchange Coinbase announced that users can no longer transfer NFTs using Coinbase’s Wallet app on Apple devices due to Apple’s AppStore policy.

“You might have noticed you can’t send NFTs on Coinbase Wallet iOS anymore,” Coinbase tweeted on Dec. 1, adding that Apple is forcing Coinbase to remove the NFT transfer option from its iOS wallet.

“This is because Apple blocked our last app release until we disabled the feature,” the statement claimed.

However, the problem is that Apple reportedly wants its share. To send NFTs, there are some gas fees involved. According to Coinbase, the iPhone maker stated that these fees have to be paid through the company’s proprietary in-app purchase system – the reason is that Apple wants to collect 30% of the gas fee.

“Simply put, Apple has introduced new policies to protect their profits at the expense of consumer investment in NFTs and developer innovation across the crypto ecosystem,” Coinbase Wallet revealed.

The wallet provider suggests that, if Apple understood how blockchains and NFTs worked, it would be apparent to them that their idea “is clearly not possible.” Apple’s system does not support crypto payments, said Coinbase, “so we couldn’t comply even if we tried.”

Further, Coinbase argued that there is an even bigger issue caused by the policy change, and one that directly impacts Apple users who are NFT holders. Per the exchange, Apple “made it a lot harder” for those who hold an NFT in a wallet on an iPhone to transfer their own NFT to other wallets, or even to send it as a gift to a family member or a friend.

“We hope this is an oversight on Apple’s behalf and an inflection point for further conversations with the ecosystem,” the Twitter thread read. 

The recent policy change also addresses NFTs. Section 3.1.1 In-App Purchase specifically said:

“Apps may use in-app purchase to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing, and transferring. Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app. Apps may allow users to browse NFT collections owned by others, provided that the apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.”

However, it is still unclear, how the Apple team found their in-app purchase system equipped to handle taking a cut from these types of fees, which are also not fixed and change constantly based on several relevant factors. 

Meanwhile, Coinbase CEO Brian Armstrong called Apple Store a monopoly, describing some conversations with the tech giant as “absurd.”