- Google mandates licensing for crypto wallets on Play Store.
- Impacts US and EU with stringent compliance requirements.
- Affects non-custodial wallets not legally classified as transmitters.
Google has instituted a policy mandating that all crypto wallet apps on the Play Store in the US and EU acquire federal or equivalent banking licenses.
This policy, surpassing legal requirements, could disrupt wallet availability and impact crypto adoption in these regions significantly.
Google has implemented a new policy requiring all crypto wallet apps on the Play Store in the US and EU to obtain federal banking licenses including FinCEN registration. This requirement applies regardless of custodial or non-custodial distinctions.
Google’s policy now includes US registration under FinCEN as a Money Services Business or obtaining a federal/state banking charter. This far-reaching measure affects developers globally, particularly non-custodial wallets traditionally exempt from such requirements.
The policy is expected to raise significant compliance costs, affecting early-stage and community crypto projects in the US and EU. This development may lead to many wallet apps being excluded from the Play Store, impacting their visibility.
Financial feasibility of maintaining Play Store access under new guidelines could deter venture capital interest in affected projects. The decision potentially reallocates activity to alternative platforms, influencing wallet distribution methods.
Google’s policy shift does impact the listing of many popular crypto wallets. Developers may pivot to sideloading or using non-Google app stores to distribute wallet applications. Google Ads Policy: Financing and investments compliance guidelines highlights a regulatory gap.
Historically, non-custodial wallets were not seen as money transmitters under FinCEN’s 2019 guidance. Google’s new stipulations, however, challenge existing legal standings, potentially stifling service availability and user adoption in affected regions. A statement regarding the reach of the policy indicates,
Google’s policy thereby goes well beyond what is required of non-custodial wallets by law…that has significant implications for distribution in the affected regions.
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