Crypto exchange Coinbase (COIN) has disabled non-fungible token (NFT) transfers on its iOS wallet app because of a dispute with Apple (AAPL) over the company’s in-app purchase policy.
Taking to Twitter on Thursday, Coinbase said Apple is demanding it pays its gas fees using Apple software, which would thus make those gas fees subject to Apple’s 30% app tax.
“For anyone who understands how NFTs and blockchains work, this is clearly not possible,” Coinbase said. “Apple’s proprietary In-App Purchase system does not support crypto, so we couldn’t comply even if we tried.”
The dispute is the latest in a months-long saga between Apple and the NFT community. In October, Apple officially refused to exempt NFT trading from its 30% App Store fee, a policy that has kept marketplaces like OpenSea from offering NFT trading within its mobile app.
Apple didn't respond to a request for comment.
“When someone imposes rules that can’t be followed, you should ask why,” Coinbase Chief Legal Officer Paul Grewel tweeted in response to the decision.
Coinbase’s Apple feud comes as new Twitter owner Elon Musk questions the same 30% in-app fee policy and as Musk claims that Apple has threatened to remove Twitter from its app store.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.