Coinbase claims that Apple’s App Store has blocked its app release for NFTs in the Wallet

Coinbase Global said on Thursday that customers using Apple’s iOS will no longer be able to send non-fungible tokens (NFTs) to the cryptocurrency exchange.

“Apple’s claim is that the gas money required to send NFTs needs to be paid through their In-App Purchases program, so they can collect 30 percent of the gas money,” Coinbase Wallet said in a tweet.

Coinbase said it would not be able to comply with the requirement even if it tried since the iPhone maker’s in-app purchases do not support crypto.

“Apple has introduced new policies to protect their profits from the loss of consumer investment in NFTs and the innovation of developers in the entire crypto ecosystem,” said Coinbase, adding that the policy is similar to Apple trying to reduce fees for all emails sent. in open Internet protocols.

Apple did not immediately respond to Reuters’ request for comment on the matter.

The 30 percent fee has been the subject of controversy between the world’s most valuable company and other application developers such as Spotify and Fortnite maker Epic Games, who have accused the company of abusing its “monopoly”.

Coinbase’s issue with Apple comes at a difficult time for crypto exchanges, whose shares are down nearly 80 percent so far this year. The company has also reduced operations to control costs as investors lose interest in private equity.

NFTs, which are digital assets that exist on the blockchain and carry unique digital signatures, exploded in popularity in 2021 but have seen demand dampened by the crypto winter in recent months.

Cryptocurrencies have been included as high interest rates and fears of a recession are forcing investors to shed riskier assets with the recent collapse of rival FTX also piling pressure on the industry.

© Thomson Reuters 2022