In a significant policy update, Google Play Store has mandated that cryptocurrency wallet providers secure appropriate government-issued licenses in over 15 jurisdictions, including the U.S. and European Union member states. These revised requirements, set to take effect very soon, aim to ensure compliance with regional financial regulations.
The development is significant as Google Play’s enforcement of strict policies, particularly around licensing and regulatory compliance, can significantly impact crypto wallets by limiting their availability and increasing operational hurdles for developers.
Failure to comply can result in apps being delisted or banned from the store, reducing user access and forcing reliance on sideloading (installing apps outside the store, which is riskier and less convenient). This enforcement aims to align with local laws like anti-money laundering (AML) rules, Know Your Customer (KYC) requirements, and financial service regulations (for instance, FinCEN registration in the U.S. or MiCA authorization in the EU).
Mandatory Compliance Rules Rolled Out for Multiple Regions
The tech giant announced that developers must register with local regulators and comply with industry standards to publish crypto exchanges and software wallets on its app store. The revision exempts non-custodial wallets from these requirements.
U.S. developers must register as either money service businesses or money transmitters with local regulators. EU developers need registration as crypto-asset service providers (CASP). Companies registered with the Financial Crimes Enforcement Network (FinCEN) as money services businesses are required to implement written Anti-Money Laundering programs.
According to news reports, the clarification was issued in response to community backlash, as Google’s initial policy language from July 10 was ambiguous and caused fears that non-custodial wallets would be subject to stringent licensing requirements. The company stated that “Non-custodial wallets are not in scope of Google Play’s Cryptocurrency Exchanges and Software Wallets Policy.”
Developers must declare their apps as cryptocurrency exchanges or software wallets under App Content’s Financial Features Declaration. Apps targeting listed countries receive location-specific compliance forms to complete.
Google Play Maintains Conservative Stance on Cryptocurrency Apps
According to industry experts, the policy change could drive broader adoption of Know Your Customer checks and other regulatory measures across the cryptocurrency industry.
Google Play has taken a cautious stance on cryptocurrency applications. In July 2018, the platform banned cryptocurrency mining apps due to performance concerns. In 2021, Google removed the Bitcoin Blast video game and banned eight deceptive crypto apps that misled users into paying for illegitimate cloud services.
In July 2023, Google permitted non-fungible token (NFT) games, requiring developers to disclose features and prohibit gambling elements. Google Play’s blockchain content guidelines currently emphasize three key app categories: cryptocurrency exchanges and software wallets, apps distributing tokenized digital assets, and NFT-based gamification applications.
