Coinbase is Compelled by Apple to Disable NFT Transfers on Its Wallet App

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Last Updated on December 3, 2022 by Bitfinsider

Coinbase’s Wallet iOS application no longer enables NFT transactions due to Apple’s October announcement of new, stringent NFT restrictions.

“You may have noticed that Coinbase Wallet iOS no longer supports sending NFTs. This is because Apple prevented the distribution of our previous app until we deleted this functionality,” the Coinbase Wallet Twitter account explained Thursday.

While non-fungible tokens are not expressly prohibited in Apple’s mobile app store, they are subject to a 30% transaction fee. If developers cannot meet this condition, their app will be removed from the app store.

According to Coinbase, Apple wants a 30% fee on any gas costs (transaction fees on the Ethereum network) paid on NFT transfers done using the wallet app, which Coinbase deems “impossible.”

This is impossible for anyone who understands how NFTs and blockchains function, according to Coinbase. “Apple’s In-App Purchase mechanism does not support cryptography, so even if we tried, we could not comply.”

Every time a user performs a transaction on the Ethereum network, even when merely moving an asset to a separate wallet, the user must pay a cost known as gas. These costs are necessary for the network to function. However, they are more complex than flat fees and cannot be governed by a single company.

Gas prices, which are measured in gwei but paid in ETH, fluctuate based on Ethereum network traffic and a smart contract’s code performance. And sophisticated users may choose to pay more to get their transaction to the head of the line.

Coinbase is unhappy with Apple’s move to restrict its mobile application, comparing it to Apple’s attempt to collect a charge for every email sent via open Internet protocols.

Apple’s controversial in-app purchase price has enraged some crypto proponents, including Epic Games CEO Tim Sweeney, who previously contested Apple’s policies in court and stated that the tech giant “must be stopped.”

Coinbase stated that it hopes this choice was only “an oversight” and that it is open to further discussion. It is also of the opinion that Apple’s rigorous NFT charge policy would hinder the widespread adoption of NFTs and make it more difficult for customers to transfer their assets.

Coinbase stated, “Apple has implemented additional regulations to safeguard its profits at the expense of customer investment in NFTs and developer innovation across the crypto ecosystem.”

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