Google Play Store is updating its Cryptocurrency Exchanges and Software Wallets Policy, effective October 29, extending licensing requirements to custodial crypto wallet applications in over 15 jurisdictions including the United States and the European Union. Non-custodial wallets, however, remain out of scope and will continue to be available without additional licensing obligations.
The revised policy mandates that custodial wallet providers operating on Google Play obtain appropriate regulatory licenses—such as Money Services Business or money transmitter registration in the US and Crypto-Asset Service Provider licensing in the EU. Licensed entities must implement and maintain robust Anti-Money Laundering (AML) and Know Your Customer (KYC) programs consistent with local and international standards.
Companies affected by the update will need to register with their local regulators and ensure ongoing compliance with capital, reporting, and cybersecurity requirements. The policy change follows a history of intermittent enforcement actions by Google Play against cryptocurrency apps, including the removal of mining, trading, and wallet apps in previous years due to concerns over user safety and fraudulent activity.
In its clarification, Google stated that non-custodial wallet applications—those that allow users to retain sole control of their private keys—are exempt from the licensing mandate. The exemption aims to preserve developer innovation and user choice in the burgeoning Web3 ecosystem. By excluding non-custodial wallets, Google Play seeks to balance regulatory compliance with support for decentralized application models that align with open-source principles.
Developers of custodial wallet applications must review the updated policy notice, register with relevant financial authorities by the deadline, and submit proof of licensing within the Play Console. Failure to comply may result in app removal or suspension for violations of the new Cryptocurrency Exchanges and Software Wallets Policy. As the global crypto regulatory landscape evolves, Google Play’s policy update represents a significant step in standardizing the distribution and operation of regulated cryptocurrency services on mobile platforms.
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