Apple rejects Zeus Bitcoin wallet after threatening to delist Damus.

Apple has rejected the latest version of Zeus, a non-custodial Lightning-enabled bitcoin wallet, according to a tweet by its founder Evan Kaloudis. This happened after Apple had an issue with Damus, a decentralized social media platform that 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 as a token of their appreciation. Now, Apple has asked the creator of Zeus 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. Zeus is said to be in violation of Apple’s guidelines which require apps to provide proof of appropriate licenses such as money transmitter licenses to facilitate the “transmission” of cryptocurrencies. However, 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. The previous version of Zeus is still in the App Store and it’s not clear what changes Kaloudis made to the new version. Damus has since agreed to remove the zap button from all content sections but has been allowed 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.