Apple has rejected the latest version of Zeus, a non-custodial Lightning-enabled Bitcoin wallet.
Zeus, Which Does not Take Custody of Funds or Private Keys, is Believed to Be in Violation of Apple's Guidelines
Apple has rejected the latest version of Zeus, a non-custodial Lightning-enabled Bitcoin wallet, citing the transmission of virtual currency without the necessary licenses and permissions as the primary reason for rejection. This decision comes just a day after Apple's dispute with Damus, a decentralized social media platform that operates on the Nostr protocol. Damus's "zap" feature, which allows users to send small amounts of Bitcoin over the Lightning Network to content creators as a token of appreciation, was the cause of Apple's concern. Apple has now turned its attention to Zeus, demanding proof of the required licenses and permissions for the app to facilitate virtual currency transmission or face rejection from the App Store.
Zeus, which does not take custody of funds or private keys, is believed to be in violation of Apple's guidelines that require apps to provide proof of appropriate licenses for cryptocurrency transmission. However, legal experts argue that non-custodial wallets like Zeus should not be classified as money transmitters, a designation typically reserved for custodial wallets. Some hope for a compromise, as other non-custodial wallets currently exist in the App Store. The prior version of Zeus remains available, and it is unclear what changes were made to the new version.
