Apple recent decision to reject the latest version of the Zeus app, a Lightning-enabled Bitcoin crypto wallet, has once again raised concerns about the tech giant’s approach to cryptocurrency-related apps.Â
This move follows Apple warning to another Bitcoin app, Damus, inviting it to remove certain features.Â
Zeus’ rejection and the ongoing discussions between its developers and Apple highlight the challenges app developers face in navigating the changing regulatory landscape surrounding cryptocurrencies.
Summary
Apple rejection of Zeus, the crypto wallet for Bitcoin
According to a tweet by Zeus founder Evan Kaloudis, Apple expressed concerns that the app facilitates the transfer of virtual currency without being submitted by a recognized financial institution or exchange.Â
The company requested documentation evidencing the necessary licenses and permissions to distribute an app with cryptocurrency trading functions in all available locations.
However, Zeus claims that it is a non-custodial wallet and does not provide cryptocurrency trading services.
Paolo Ardoino, CTO of Tether, points out that the absence of custodianship should not be a significant problem, as the app is only a software interface.
Zeus is currently engaged in discussions with Apple in an attempt to resolve the concerns raised and gain approval. It is worth noting that the previous version of the Zeus app remains accessible in the App Store.
Apple warning to Damus crypto wallet
In addition to Zeus’s rejection, Apple recently warned Damus, another Bitcoin related app, about its function of “zaps” or flipping Bitcoin.Â
As a result, Damus has been ordered to remove the “zaps” feature from all content sections, although it can still be maintained at the profile level.
Damus’ lead developer, William Casarin, says that he intends to resubmit the app with the zaps feature in the future, as he believes it does not violate any guidelines.
The actions taken by Apple against Zeus and Damus reflect the challenges facing app developers in the rapidly changing regulatory environment of cryptocurrency.
Regulators around the world are grappling with the need to strike a balance between protecting consumers and promoting innovation. However, the lack of standardized guidelines and the divergent approaches taken by different jurisdictions create uncertainty and confusion.
Apple’s cautious approach to cryptocurrency-related apps is dictated by its responsibility to protect its user base and comply with regulations.
By requiring proper licensing and authorization documentation, Apple aims to ensure that apps on its platform comply with legal requirements and protect users from potential risks.
However, the ambiguity of regulations makes it difficult for developers to fully understand and comply with all the necessary criteria.
The role of non-custodial wallets
A controversial point in the Zeus case is the distinction between custodial and non-custodial wallets.
A custodial wallet, typically provided by exchanges or financial institutions, holds users’ private keys and manages their funds.
In contrast, a non-custodial wallet, such as Zeus, allows users to retain control over their private keys and securely store cryptocurrencies without relying on a third party.
Non-custodial wallets have gained popularity due to their enhanced security and autonomy. They allow individuals to have direct control over their funds, reducing the risks associated with centralized custodial services.
Apple’s rejection of Zeus, despite its non-custodial nature, suggests that the distinction between custodial and non-custodial wallets may not always be clear-cut in the eyes of regulators or app store guidelines.
For app developers in the cryptocurrency industry, compliance with regulatory requirements remains a significant challenge. They must navigate through a complex web of regulations that vary by jurisdiction and are often subject to interpretation.
Lack of clarity can lead to app rejection, delays, and additional costs for developers striving to provide innovative and secure apps.
Apple balance in the issue
It is essential for Apple to strike a balance between protecting users and adopting innovations in cryptocurrency.
While the company’s cautious approach demonstrates its commitment to safeguarding its user base, it is critical to ensure that the app review process is transparent and consistent.
Clear and comprehensive guidelines specific to cryptocurrency-related apps would help developers understand expectations and requirements in advance, reducing the risk of rejection and creating a more innovation-friendly environment.
In conclusion, Apple’s rejection of the latest version of the Zeus Bitcoin wallet and the warning to Damus highlight the ongoing challenges facing app developers in the cryptocurrency space.
Navigating the regulatory landscape surrounding cryptocurrencies remains complex due to different regulations and the absence of standardized guidelines.
To address these challenges, collaboration between industry stakeholders and regulators is critical to establish clearer guidelines and foster understanding of the unique characteristics of non-custodial wallets.
App developers should remain proactive in maintaining regulatory compliance and seek legal guidance when needed.
Working together, we can create a more transparent and conducive environment that encourages innovation while ensuring user protection in the rapidly evolving cryptocurrency world.
