If this imaginary trans women space accepted all serious forms of presurgical or partial-surgical proof, such as a doctor’s letter or a hormone prescription or an orchiectomy or etc, then that would not be discriminatory and would be fine.
The core issue here is that this app is trying to enforce gender as purely a function of physical characteristics, denying altogether that gender is more complicated than that and is not guaranteed to be linked to any physical characteristics whatsoever. Their ”women only” definitions fail the transgender women test, the intersex test, and the “born female-sex athletes with high testosterone and masculine facial features” test.
Either they are blithely unaware of these complications, or they are unconcerned with them. That is, itself, newsworthy.