Apple (AAPL) has recently made headlines, following its decision to reject the latest version of non-custodial Lightning-enabled bitcoin wallet, Zeus, according to a tweet from its founder, Evan Kaloudis. This comes after Apple’s disagreement with the Damus app, a decentralized social media platform that runs on the Nostr protocol. The main bone of contention was over Damus’s “zap” feature, which allowed users to send small amounts of bitcoin through the Lightning network to their favorite content creators.
The Lightning network is designed for cheaper and faster transactions as a second layer payment network to Bitcoin. Apple now requests that Zeus provides proof of the necessary licenses and permissions for the wallet’s approval concerning the virtual currency transmission. If proof is not provided, the app will face rejection from Apple’s App Store.
Zeus seems to be violating Apple’s guidelines, which require apps to present appropriate licenses – such as money transmitter licenses – in order to facilitate cryptocurrency transmission. However, the issue is not as black and white. Many legal experts believe that non-custodial wallets like Zeus, which do not take custody of funds or private keys, should not be classified as money transmitters. Rather, this classification should be reserved for custodial wallets such as those offered by companies like Coinbase and Binance.
Breez, another non-custodial bitcoin wallet available on Apple’s App Store, tweeted that non-custodial wallets should be approved, pointing out that there is a specific exception in the same section, and there are numerous wallets already available in the App Store.
The previous version of Zeus remains in the App Store, but it’s uncertain what changes were made to the new version. Feedback from Evan Kaloudis, Damus founder William Casarin, and Apple has yet to be received.
Meanwhile, Damus has agreed to remove the “zap” button functionality from all content sections, as Apple considers such an action equivalent to enabling the sale of digital content. Nevertheless, the tech giant has allowed Damus to keep zap functionality at the profile level.
While the cryptocurrency community eagerly awaits swift resolution, it remains to be seen if some form of compromise will be reached between Zeus and Apple. With the ever-increasing popularity and implementation of cryptocurrencies, striking the right balance between innovation, regulation, and safety may become more challenging. Nevertheless, the path to finding the appropriate compromise for all parties involved remains essential for the continued growth and adoption of cryptocurrencies.
Source: Coindesk
