Google stirred confusion this week after reports suggested it would ban crypto wallets in the U.S. and EU without federal licenses. The announcement sparked immediate backlash from developers who feared a blanket ban on both custodial and non-custodial apps.
The company has since clarified: non-custodial wallets remain unaffected. The new rules apply only to custodial services, apps or exchanges that hold user funds or private keys. These providers will now need to show the proper licenses in key regions, including FinCEN/MSB approvals in the U.S. and MiCA registrations in the EU.
The move highlights a critical balance: regulators want stronger oversight of custodial platforms, while leaving self-custody innovation untouched. For developers and users, the message is clear, if you hold your own keys, your wallet isn’t at risk.
Note: The policy takes effect later this year, giving custodial providers time to adapt, while non-custodial apps can continue building without new hurdles.
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