Apple has stopped a software update for the Zeus Bitcoin wallet because they believe it violates certain rules regarding licenses. They say that the app allows people to send and receive virtual currencies, but it doesn’t have the necessary authorization to act as a financial institution or exchange.
“App facilitates the transmission of a virtual currency but was not submitted by a corresponding exchange or recognized financial institution,” states apple.
Apple Rejection of Zeus Bitcoin Wallet Questionable
Some people find Apple’s decision to reject the Zeus Bitcoin wallet puzzling. The reason is that the wallet is a non-custodial one, meaning it doesn’t store funds or users’ private keys in a central location. The classification of money transmitters usually applies to custodial wallets like the ones provided by Binance and Coinbase, where they hold and manage customers’ funds.
Legal experts believe that Apple’s classification of the Zeus Bitcoin wallet as a violation is incorrect. They are of the opinion that the decision will likely be challenged and overturned. These experts argue that since the wallet is non-custodial and does not involve the holding or management of funds, it should not fall under the same category as custodial wallets. The outcome of such challenges remains to be seen.
The Zeus Bitcoin wallet is a type of wallet that does not hold or control users’ funds. It utilizes the Lightning Network, which enables faster and less expensive transactions compared to traditional methods. The wallet is constructed using TypeScript and React Native technologies, making it compatible with various platforms. In addition to being available on Apple’s App Store, it is also accessible for download on Google Play.
Apple Also Threatened to Delist Damus
Apple has made similar decisions about other apps related to cryptocurrencies and decentralized technology. One of these apps is Damus, which is a decentralized social network. Apple threatened to remove the app from their platform because it included a feature that allowed users to tip in Bitcoin. This action received a lot of criticism from the cryptocurrency community. People were upset because they believed that Apple’s decision limited innovation and restricted users’ access to certain features.
According to Jack Dorsey’s comments on the incident, he mentioned that the act of tipping on posts is not equivalent to selling digital content, but rather a way of providing feedback. Damus was required to remove the button that allowed tipping on posts from its interface. However, the ‘zaps’ feature, which is presumably another aspect of the app, is still allowed to be present on user profiles.
Crypto Community Reacts Harshly
The reaction from the crypto community regarding Apple’s actions has been intense, and several influential individuals have shared their opinions on social media. Paolo Ardoino, the CTO of Tether, also expressed his thoughts on the matter. He highlighted that pushing back against Apple’s decision should be relatively straightforward, as being non-custodial implies that the product is merely a software interface and does not involve holding or managing users’ funds. This viewpoint suggests that non-custodial wallets should not face the same restrictions as custodial ones.
The Lightning Network Interface echoed similar sentiments and expressed the view that non-custodial wallets should be approved by Apple, pointing out that there is a specific exception mentioned in the relevant section. They highlighted that there are numerous wallets available on the App Store. Ouriel Ohayon, the CEO of ZenGo, suggested that resolving the situation could be easily achieved by collaborating with Apple’s review team. This implies that open communication and cooperation could potentially lead to a resolution of the incident.
Evan Kaloudis, the founder of Zeus, also shared the same viewpoint as others, emphasizing that the absence of an exchange facility within the wallet could be a significant factor in quickly resolving the situation. This suggests that since Zeus does not provide exchange services, it may not fall under the same regulatory considerations as wallets that offer such functionalities. The lack of an exchange feature could potentially make it easier to address the concerns raised by Apple and find a resolution promptly.