Tensions between tech giants and the cryptocurrency industry are becoming less and less rare. Recently, Apple, the tech giant, has rejected the latest update to Zeus, a non-custodial bitcoin wallet. This incident raises questions about the licenses needed for cryptocurrency apps and Apple’s position on innovation in this area.
Zeus: A Noncustodial Bitcoin Wallet
Zeus is a mobile node manager app with all the functionality of a Bitcoin Lightning wallet, which simplifies bitcoin payments and gives users full control over their finances. He uses the Lightning Network, a technology that enables faster and cheaper Bitcoin transactions. Unlike custodial wallets, Zeus does not centrally support user funds or private keys.
An update rejected by Apple
On June 14, 2023, Apple rejected the latest version of Zeus.
The reason given by Apple for this rejection is that Zeus facilitates the transmission of virtual currencies without the necessary licenses and permissions. The move came as a surprise to many observers, as Zeus is a non-custodial wallet, meaning it does not centrally support users’ funds or private keys. Instead, it allows users to manage their own funds and private keys, providing a level of control and security that many cryptocurrency users appreciate.
Nevertheless, a tweet relayed by the Zeus application account a few hours ago claims that the application has been validated by Apple.
“We have heard rumors that ZeusLN has been approved by Apple”
@10101
Apple’s decision was particularly surprising because it closely followed a similar incident with Damusa decentralized social media platform that runs on the protocol Nostr. Apple had threatened to pull Damus from the App Store for similar reasons, raising concerns about Apple’s stance on cryptocurrency apps and blockchain technology in general.
The legal implications
Apple’s decision has raised significant questions about the legal implications of cryptocurrency apps. More specifically, she has highlighted the uncertainty surrounding the classification of non-custodial wallets and the licenses required for these applications.
According to many legal experts, THE wallets non-custodians like Zeus should not be classified as money issuers. This classification is typically reserved for custodian wallets, which centrally support user funds and private keys.
However, Apple seems to have a different interpretation. The company asked the developers of Zeus to provide proof of the licenses and permissions required for the transmission of virtual currencies. If Zeus cannot provide this proof, the application could be permanently rejected from the App Store.
The incident between Apple and Zeus raises important questions about the existing bridge between decentralized applications, blockchain technology and application hub. He highlights tensions between tech giants and the cryptocurrency industryand raises questions about how these companies can coexist and collaborate to foster innovation.
Sources: Zeus