Yes, unfortunately, it's only for steps you take when you have your phone on you.
I'd love for it to be a able to linked to the various fitness trackers and wearables we have nowadays, but the app works to stop cheating and all steps are run through the Sweatcoin Algorithm that checks the data and prevents said cheating - so I doubt there could be a workaround.
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Shame... I'll still download it for hikes and stuff... but yeah, I'll miss out on my training and games of indoor soccer... still, better than no coins surely.