Users of iOS smartphones won’t be able to transmit NFTs from their Coinbase wallets on iOS devices any longer, according to information from a Coinbase tweet thread. Coinbase also mentioned in the tweet that Apple had halted the release of their most recent app until they turn off the feature.

The wallet is disabled on iOS by Apple, iOS users can no longer transfer NFTs from their wallets on iOS devices. 

Apple demanded that Coinbase stop supporting NFT trading if they don’t put a tax on the transfers. On the morning of December 1, Coinbase announced that users of the Coinbase Wallet had this function limited.

Coinbase also claimed in the tweet that Apple had halted the rollout of their most recent software until they turned off the functionality or added a tax.

Did Apple demand a 30% gas tax on the Coinbase wallet?

The primary justification offered by Coinbase is that:

“…the gas fees required to send NFTs need to be paid through their In-App Purchase system so that they can collect 30% of the gas fee.”

Coinbase compares it as charging a fee for each email sent

Apple’s request is impractical for anyone familiar with how NFTs and blockchain operate. Even if we wanted to comply, we couldn’t because Apple’s exclusive In-App Purchase system doesn’t support cryptocurrency, according to Coinbase. Coinbase also compared it to Apple’s attempt to charge a fee for each email sent using open internet protocols. One of the most significant issues with Apple’s decision is that iOS users with NFT stored in an iPhone wallet must go through a laborious transfer process to transfer the NFT.

In other words, Apple has implemented new regulations to safeguard its profits at the expense of consumer investment in NFTs and developer innovation throughout the crypto ecosystem. The decision will undoubtedly impact a large segment of iOS users who keep their NFTs in their iPhone wallets. If the decision is overturned, how that will impact the ecosystem is unknown.

Coinbase concludes by saying that it hopes this was just an oversight or miscommunication on the part of Apple. If that’s the case, Apple hasn’t only encountered this problem this week. Elon Musk, the CEO of Twitter, claimed just a few days ago that Apple was threatening to remove the social media platform from the App Store, but after an in-person meeting between Tim Cook and Elon Musk, it was discovered that this was not the case.

We’ll be sure to update this article if there are any new developments regarding the ongoing Coinbase Wallet and Apple problem.

 

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Jonatan is a freelancer, content writer, and researcher surrounding the topics of crypto, DeFi, and Web3. He is also the author of a crypto & Web3 book “What Exactly is Crypto”.