Apple has issued a warning to Damus, a decentralized social networking company, stating that it will be removed from the App Store in two weeks if it does not remove the “Zaps” feature that enables Bitcoin payments, as it contravenes the in-app purchase regulation.
While Apple did not object to the use of Bitcoin instead of traditional currencies for sending “Zaps,” the app’s ability to conduct transactions off the platform was identified as a violation by the company.
In a statement on social media, Damus expressed that the inability of individuals to transact peer-to-peer on their platform would be a significant moment with far-reaching consequences for the broader ecosystem of apps that integrate Bitcoin Lightning and v4v.
The company shared a screenshot of the warning issued by Apple, which stated that the app allowed users to send tips associated with receiving digital content creators’ content via a mechanism other than in-app purchase and that while tips or donations may be voluntary if they are linked to receiving digital content, they must adhere to the guidelines and use in-app purchase.
Damus leverages a widget for the Layer-2 Lightning Network, which is constructed on the Bitcoin network, to process cryptocurrency transactions, but the company acknowledged that it would be required to adhere to Apple’s in-app payment regulations and would be compelled to remove the feature.