Google Play Store Sets New Licensing Rules on Crypto Wallet Developers

Update (Aug. 13, 9:33 pm UTC): This article has been updated to clarify that Google’s upcoming requirements will not apply to non-custodial wallets.

Google Play will require crypto wallet providers in over 15 jurisdictions, including the United States and the European Union, to get licenses and comply with “industry standards” under an updated policy. The revision does not affect non-custodial wallets.

According to Google Play’s policy notice, the changes take effect Oct. 29. Developers in the US will need to register with local regulators as either a money services business or money transmitter, while those in the EU must register as a crypto-asset service provider (CASP).

In the US, companies registered with the Financial Crimes Enforcement Network (FinCEN) as money services businesses must meet specific requirements, including implementing a written Anti-Money Laundering program. This could lead to broader adoption of Know Your Customer checks and other measures.

Google addressed concerns over the policy impact on X following backlash from the crypto community, stating: “Non-custodial wallets are not in scope of Google Play’s Cryptocurrency Exchanges and Software Wallets Policy. We are updating the Help Center to make this clear.”

Simon Dixon was among the people voicing opposition to the change. Dixon, who claims he spoke at the first Bitcoin (BTC) conference, wrote, “Google bans unlicensed Bitcoin and crypto wallets in the US & Europe. They really want Blackrock to own it for you. Fight back with Bitcoin in self-custody.”

Google Play Store has tenous history with crypto apps

The Google Play Store has had a long, tenuous history with the crypto industry. In 2018, it banned crypto mining apps and removed the Bitcoin Blast video game for deceptive practices in 2020. It took down crypto news apps in the same year, including Cointelegraph’s and Coindesk’s, without explanation.

In 2021, it banned eight “deceptive” crypto apps. These apps allegedly tricked users into paying for an illegitimate cloud service.

In 2023, Google announced it would permit non-fungible token games, requiring developers to disclose the feature and ban gambling elements. It also barred “loot boxes,” which offer players random, mystery items.

According to the Google Play Store blockchain content page, four types of apps currently warrant special attention: cryptocurrency exchanges and software wallets, crypto wallets, apps that distribute tokenized digital assets, and NFT gamification.

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