Coinbase disables NFT trading on walletdue to App Store rules

Coinbase disables NFT trading on wallet due to App Store rules

News, NFT news

Due to a restriction implemented by Apple in the Software Store, major cryptocurrency exchange Coinbase has informed that users of its Coinbase Wallet app on Apple devices would no longer be able to transfer non-fungible tokens (NFTs).

“You might have noticed you can’t send NFTs on Coinbase Wallet iOS anymore,” said Coinbase in their tweet on Thursday, later adding that Apple is forcing Coinbase to remove the NFT transfer option from its iOS wallet.

The statement claimed that, 

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

And it all boils down to money: Apple is said to be demanding a portion of the profits.

In the cryptoverse, it is common knowledge that sending NFTs requires payment of gas costs. These payments must be paid in order to transfer NFTs. However, the exchange reports that the iPhone manufacturer specified that these costs must be paid via the company’s own in-app purchase system. The rationale for this requirement is that Apple intends to earn thirty percent of the gas charge from each transaction.

Per Coinbase Wallet,

“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.”

The wallet provider goes on to suggest that, if Apple understood the way in which 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.”

Nevertheless, Coinbase said that there is an even more significant problem that has arisen as a result of the regulation change, and that this problem directly affects Apple customers who are NFT holders. To be more specific, according to the exchange, Apple “made it a lot harder” for people 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 member of their own family or a friend. This was done in order to prevent people from giving away their NFTs.

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

The recent policy change in question specifically addresses NFTs. Section 3.1.1 In-App Purchase states that,

“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.”

It is not clear how the Apple team came to the conclusion that their in-app purchase system was ready to handle taking a cut from these types of fees, which are not only variable but also change on a consistent basis based on a number of factors that are pertinent to the situation.

Coinbase CEO Brian Armstrong, meanwhile, tweeted on Thursday that Apple Store is a monopoly, describing some of the conversations with the tech giant as “absurd.”

Compiled by Coinbold

blockchain, Coinbase, NFT