Apple claims that the gas fees required to send non-fungible tokens must be paid through their in-app purchase system, so they can collect 30% of the gas fees, Coinbase tweeted
Coinbase Global Inc said on Thursday that customers using Apple Inc iOS will no longer be able to send NFTs to the crypto currency exchange’s wallet.
Apple claims that the gas fees required to send non-fungible tokens must be paid through their in-app purchase system, so they can collect 30% of the gas fees, Coinbase Wallet tweeted.
The crypto currency exchange said it would not be able to abide by the requirement even if it tried as the iPhone maker’s proprietary in-app purchase system does not support crypto.
Apple has introduced new policies to protect its profits at the expense of consumer investment in non-fungible tokens and developer innovation in the crypto ecosystem, the crypto currency exchange added. This policy was similar to Apple’s attempt to cut the fee for each email sent on open internet protocols.
The 30% fee has been a contentious issue between Apple and other app developers such as Spotify and “Fortnite” creator Epic Games, who have accused the company of abusing its “monopoly.”
Coinbase’s issue with Apple comes at a difficult time for the crypto exchange, whose shares are around 80% lower so far in 2023. The firm has also cut jobs to manage expenses as investors’ interest in crypto currencies has diminished.
NFTs, which are digital assets that exist on the blockchain and carry unique digital signatures, surged in popularity in 2021 but have seen a drop in demand in recent months because of crypto winter.
Crypto currencies have been in a downturn due to concerns about higher interest rates and recession, which have compelled investors to sell risky assets, with the failure of rival exchange FTX also adding to the pressure on the industry.