Apple has rejected the latest version of non-custodial Lightning-enabled Bitcoin wallet Zeus, according to a tweet by Zeus founder Evan Kaloudis. This follows Apple’s dispute with another popular Lightning-enabled Bitcoin app, Damus, which runs on the Nostr protocol. Apple took issue with Damus’ zap feature, which allows users to send small amounts of Bitcoin over the Lightning Network to their favorite content creators.
Apple has now asked Zeus’ creator to provide proof of requisite licenses and permissions for approval to facilitate transmission of a virtual currency or face rejection by Apple’s App Store. This is in line with Apple’s guidelines which require apps to provide proof of appropriate licenses – such as money transmitter licenses – in order to facilitate the transmission of cryptocurrencies.
Many legal experts agree that non-custodial wallets like Zeus that don’t take custody of funds or private keys should not be classified as money transmitters. Breez, another non-custodial Bitcoin wallet currently in Apple’s App Store, tweeted: Non-custodial wallets should be approved. There’s a specific exception in the same section. There are a lot of wallets in the App Store.
Damus has since agreed to remove the zap button from all content sections. Apple has allowed Damus to maintain zap functionality at the profile level. It remains to be seen if some form of compromise will also be reached between Zeus and Apple.