Apple has made headlines in the cryptocurrency community as it rejects the latest version ‘0.7.6’ of the non-custodial Lightning Network-enabled Bitcoin wallet, Zeus.
This rejection follows Apple’s warning to another Bitcoin-related app, Damus, signaling the tech giant’s increasing scrutiny of cryptocurrency apps on its platform.
According to a tweet by Zeus founder Evan Kaloudis, Apple cited the reason for rejection as the app facilitating the transmission of virtual currency without being submitted by a recognized financial institution or corresponding exchange.
Apple demanded that Zeus provide documentary evidence of the necessary licenses and permissions to distribute an app with cryptocurrency exchange features.
Even though Zeus operates as a non-custodial wallet and does not provide crypto exchange capabilities, discussions with Apple for approval are ongoing. Many industry experts, including Tether CTO Paolo Ardoino, argue that being non-custodial should not pose a significant hurdle since the app functions solely as a software interface.
The rejection of Zeus comes shortly after Apple’s warning to Damus regarding its “zap” feature, enabling Bitcoin tipping.
Damus has been instructed to remove the zaps functionality from content sections but can retain it at the profile level. Damus core developer William Casarin plans to resubmit the app with zaps, asserting compliance with guidelines.
Legal experts and industry figures have voiced concerns over Apple’s approach. They argue that non-custodial wallets like Zeus, which do not hold funds or private keys, should not be classified as money transmitters, a category typically applicable to custodial wallets.
Critics emphasize that there are numerous non-custodial wallets available on the App Store, calling for consistent guidelines. Apple’s rejection of Zeus and warnings to Damus raise questions about the company’s stance on crypto apps and the need for clearer regulatory guidelines.
The crypto community, including Twitter CEO Jack Dorsey and Elon Musk, has criticized Apple’s decisions, highlighting the importance of fostering innovation and enabling a global payment protocol for the internet.
