Google Steps Back From Play Store Licensing Rules For Non-Custodial Crypto Wallets
Google has walked back plans that would have forced all cryptocurrency wallet apps on the Play Store — including non-custodial wallets — to obtain official financial services licences.
The reversal came after legal experts, advocacy groups, and crypto developers criticised the move for being unclear and overly restrictive.
The original policy, set to take effect on 29 October across 15 jurisdictions including the US, UK, and EU, did not distinguish between custodial and non-custodial wallets.
That meant independent developers could have been locked out unless they secured licences typically required for custodial services.
Google Clarifies Non-Custodial Wallets Are Exempt
In a public response to mounting criticism, Google posted on X,
“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.”
This clarification came after The Rage reported that unregistered non-custodial wallets might be banned from the Play Store in multiple countries, starting in October.
The initial announcement had triggered concerns from developers who argued the rules did not match existing regulations.
Licensing Demands For Custodial Wallets And Exchanges Remain
Under the revised guidance, custodial wallet providers and cryptocurrency exchanges will still be required to comply with local licensing laws.
In the US, that means registering with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business and obtaining state-level money transmitter permits.
Developers may also operate if licensed as a federally or state-chartered bank.
In the EU, the rules require registration as a Crypto Asset Service Provider (CASP) under the Markets in Crypto-Assets (MiCA) regulation.
Similar requirements will apply in other regions such as Canada, Switzerland, Japan, and the UAE.
Legal Experts Warn Of Big Tech Gatekeeping
Bill Hughes, an attorney at Consensys, said Google’s initial policy was “a bit of a mess” and warned,
“The final boss for crypto is now more likely to be the Big Tech platforms that still dictate the major crypto app distribution channels.”
He also noted that MSB registration in the US is “not something the FinCEN has expressly and explicitly required” for non-custodial wallets, calling the initial approach a sharp departure from current US policy.
Justin Slaughter, Paradigm’s vice-president for regulatory affairs, described the original scope as “draconian limitations” and “surprising” given Google’s ongoing antitrust battles.
He pointed to pending congressional proposals stating that “pure coding should not require a federal license,” suggesting the policy could have been at odds with potential new laws.
A Tense History Between Google Play And Crypto Apps
Google Play’s relationship with crypto has often been turbulent.
Past actions include banning crypto mining apps in 2018, removing blockchain news apps without explanation in 2020, and blocking eight so-called “deceptive” crypto apps in 2021.
While it has since allowed NFT-based games with restrictions, the platform continues to place specific compliance demands on crypto-related apps.
This latest reversal shows the industry’s influence over how tech platforms shape the rules for digital asset services — especially when those rules go beyond existing legal requirements.
Wilfred
