Apple (AAPL) has recently rejected the latest version of the non-custodial Lightning-enabled bitcoin wallet Zeus, as reported by Zeus founder Evan Kaloudis 1. This decision by Apple comes in the wake of its disagreement with another Lightning-enabled bitcoin app called Damus, a decentralized social media platform that operates on the Nostr protocol.

Apple Rejects the Bitcoin Wallet Zeus One Day After Threatening to Remove Damus.
Image: APPLE

According to tweets from Damus, Apple raised concerns regarding Damus's "zap" feature, which enables users to send small amounts of bitcoin over the Lightning Network to their favorite content creators as a token of appreciation, similar to Twitter's "tip" feature. The Lightning Network is Bitcoin's second-layer payment network designed to facilitate faster and cheaper transactions.

Apple has now shifted its attention to Zeus and has requested the wallet's creator to provide proof of the necessary licenses and permissions required for approval to facilitate the transmission of virtual currency. Failure to comply may result in Apple's rejection of the app from the App Store.

Zeus is believed to be in violation of Apple's guidelines, which stipulate that apps must furnish evidence of appropriate licenses, such as money transmitter licenses, to facilitate the transmission of cryptocurrencies. However, many legal experts argue that non-custodial wallets like Zeus, which do not take custody of funds or private keys, should not be classified as money transmitters. This classification is typically reserved for custodial wallets like those offered by Coinbase and Binance, which assume custody of customer funds.

Several non-custodial Bitcoin wallets currently exist in Apple's App Store and are urging Apple to approve non-custodial wallets, citing a specific exception within the guidelines. One example is Breez, a non-custodial Bitcoin wallet that supports this viewpoint.

The prior version of Zeus is still available in the App Store, but it remains unclear what changes Kaloudis made in the new version. CoinDesk reached out to Kaloudis, Damus founder William Casarin, and Apple for further clarification, but they had not responded at the time of reporting.

In response to Apple's concerns, Damus has agreed to remove the zap button from all content sections, as Apple considers zaps on posts to be equivalent to enabling the sale of digital content. However, Damus has been allowed to retain the zap functionality at the profile level.

The outcome of the situation between Zeus and Apple remains uncertain. It remains to be seen if a compromise will be reached or if Zeus will need to make further modifications to meet Apple's requirements.



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