Apple (AAPL) has denied the latest version of the non-custodial Lightning-enabled mobile Bitcoin wallet Zeus entry into the App Store, according to Zeus founder Evan Kaloudis in a recent tweet. This denial comes a few days after Apple’s reproach of the popular Lightning-enabled Bitcoin app Damus, a decentralized social media platform that runs on the Nostr protocol.

The tech giant was quick to point out that Damus’s “zap” feature, which allows users to send small amounts of bitcoin over the Lightning Network to their favorite content creators as a token of appreciation, violates Apple’s in-app purchase requirement. It did not take long before Apple had shifted its attention to the new version of Zeus, asking the wallet’s creator to provide proof of legal requirements – such as a money transmitter license – to facilitate “transmission” of cryptocurrencies, or else risk rejection from the App Store.

The decision sparked backlash, as legal experts argued non-custodial wallets like Zeus aren’t money transmitters. The classification is typically reserved for custodial wallets, which do take custody of customer funds. Breez, a non-custodial Bitcoin wallet currently on Apple’s App Store, lambasted the decision, tweeting “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.”

Old Zeus version is still on App Store without a clear indication of changes in the new version. With neither Kaloudis, Damus founder Casarin, nor Apple responding to inquiries, uncertainty still looms large in the air. To mend its way back to Apple’s store, Damus agreed to remove the zap button from all content sections. After further inspection, Apple allowed zap functionality at the profile level. Apple’s actions suggest a willingness to find a compromise, raising speculation about potential negotiations with Zeus.

Industry insiders perceive Apple’s selective action as favoritism, particularly in light of Twitter’s tipping functionality. The uproar increased when Jack Dorsey endorsed Damus’s decentralized social media protocol, fueling the momentum further. China’s App Store incident showcases Apple’s global influence in restricting the impact of cryptocurrencies.

It remains uncertain if Apple will collaborate with Zeus and bring relief to the digital asset space. Apple can save the day by supporting cryptocurrency technology and demonstrating its commitment to the industry. We hope that Apple and the cryptocurrency community can find a fair and reasonable resolution that addresses their respective needs.

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The post Apple Denies Entry of Bitcoin Wallet Zeus and Reproaches Lightning App Damus appeared first on Boxmining.

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Filed under: Bitcoin - @ June 16, 2023 4:15 am