From October 29, Google Play will implement a new policy requiring licenses for cryptocurrency wallets in more than 15 jurisdictions, but will grant an important exception for non-custodial wallets.
Google Play's updated policy, effective from October 29, marks a clearer distinction between regulated digital asset services and self-custody tools. Accordingly, providers of cryptocurrency wallet applications in more than 15 key jurisdictions, including the United States and the European Union, will need to have appropriate operational licenses.
In the U.S., developers must register with the Financial Crimes Enforcement Network (FinCEN) as money service businesses. In the EU, the corresponding requirement is to register as a Cryptocurrency Service Provider. This means that Anti-Money Laundering and Customer Identity Verification regulations are likely to be more broadly applied in the operations of these platforms.
The key point – and also the factor that reassures the cryptocurrency community – is that the new policy does not apply to non-custodial wallets. After initial discussions, Google confirmed on platform X that: 'Non-custodial wallets are not within the scope of the Cryptocurrency Exchange and Software Wallet Policy.'
Google Play will require cryptocurrency wallet developers in 15 jurisdictions to have licenses. Source: Google
This exception is significant because it acknowledges the fundamental difference of tools that allow users full control over their private keys and assets – a core principle in the decentralized ecosystem. This move reflects Google's focus on managing entities that act as financial intermediaries, rather than deeply intervening in tools that empower users.
This is not the first time Google has adjusted its policy with the cryptocurrency industry, but the latest development in a relationship that has been quite volatile. In 2018, Google Play banned cryptocurrency mining applications; in 2020, the platform removed several industry news apps such as Cointelegraph and Coindesk without providing a reason. In 2021, they continued to aggressively remove eight applications deemed fraudulent.
However, Google's policy is not solely restrictive. In 2023, the company began allowing games to integrate NFTs, provided that developers are transparent about the digital asset features and do not incorporate gambling elements into the product.
This adjustment, with a clear distinction between custodial and non-custodial services, shows a significant change in Google's approach: no longer applying comprehensive 'gatekeeping' measures, but shifting to a risk management model and compliance requirements similar to those in traditional finance for centralized services, while maintaining the necessary space for decentralized technological innovation.
