Update on August 13 clarifies that Google Play’s upcoming licensing rules will not apply to non-custodial crypto wallets, ensuring their operational continuity.
Starting October 29, Google Play mandates crypto wallet app developers in over 15 jurisdictions, including the US and EU, to obtain appropriate licenses and adhere to established industry standards. This policy update excludes non-custodial wallets, which do not hold their users’ private keys.
According to the official guidelines, US developers must register with local authorities as either money services businesses (MSB) or money transmitters. Similarly, developers within the European Union are required to register as crypto-asset service providers (CASP), complying with regional financial regulations.
In the United States, entities registered with the Financial Crimes Enforcement Network (FinCEN) as MSBs are obligated to implement detailed Anti-Money Laundering (AML) programs. This move is expected to promote widespread adoption of Know Your Customer (KYC) procedures and enhance compliance measures across the industry.
Google has addressed community concerns by affirming that non-custodial wallets fall outside the scope of its Cryptocurrency Exchanges and Software Wallets Policy. The Help Center has been updated to reflect this exemption clearly, alleviating fears related to regulatory overreach.
Google Play will require crypto wallet developers in 15 regions, but non-custodial wallets remain unaffected. Source: Google
Background: Google Play’s history with crypto apps
Google Play’s approach to crypto applications has been cautious and evolving. In 2018, it banned crypto mining applications, and by 2020, it had removed popular games like Bitcoin Blast along with several crypto news apps without detailed explanations.
In 2021, Google enforced bans on eight deceptive crypto apps accused of misleading users into paying for fraudulent cloud services. More recently, in 2023, it permitted non-fungible token (NFT) games, with requirements for disclosure of NFT usage and prohibiting gambling features like loot boxes that provide random rewards.
Google Play’s blockchain content policy highlights specific app categories warranting scrutiny: cryptocurrency exchanges, software wallets, crypto wallets, tokenized digital asset distributors, and NFT-related gamification applications.
Explore more: The SEC’s recent decisions leave critical crypto regulatory questions unresolved.
