#CryptoIntegration Recently, Google has introduced significant updates to its Play Store policies, with a particular focus on cryptocurrency applications. These policies seek to strike a balance between allowing innovation in the Web3 space and ensuring that applications comply with financial regulations and security standards to protect users. The new guidelines focus on two types of cryptocurrency applications: exchanges and software wallets. The main novelty is the requirement for stricter regulatory compliance, especially in certain key jurisdictions. The most notable policy is the requirement for developers of cryptocurrency exchanges and wallets to obtain the proper licenses and registrations in the jurisdictions where they operate. Applications offering these services must demonstrate their compliance with local laws. In the United States, registration with the Financial Crimes Enforcement Network (FinCEN) as a money services business is required, while in the European Union, authorization as a Crypto Asset Service Provider (CASP) under the MiCA regulation is required. This measure aims to combat fraud, money laundering, and other illicit activities. Differentiation between Custodial and Non-Custodial Wallets: Initially, there was significant controversy in the crypto community about whether the policy would apply equally to 'Non-Custodial' wallets (where the user has full control of their private keys) and 'Custodial' wallets (where the platform retains the keys). After the debate, Google clarified that while the policies generally apply, the requirements for non-custodial wallets have been revised, acknowledging their decentralized nature and their role in user autonomy. This correction was seen as a victory for advocates of decentralization. This reaffirms that, in a few years, non-custodial wallets will be more widely used.
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