Google Play Mandates Crypto Wallet Licenses in 15 Regions, Exempts Non-Custodial
Google Play has rolled out a policy requiring all crypto wallet apps across 15 regions to obtain appropriate money services or banking licenses before listing. In the US, developers must register as Money Services Businesses (MSB) with FinCEN and implement AML, KYC and CTF measures; in the EU, wallets must secure a MiCA Crypto Asset Service Provider (CASP) license. The policy initially failed to distinguish between custodial and non-custodial wallets—despite FinCEN guidance that non-custodial wallets are not money transmitters—sparking developer backlash over high compliance costs and privacy concerns. Google subsequently clarified that non-custodial wallets will be exempt and pledged further policy updates. While this move seeks to bolster user security and weed out unregulated apps in line with FATF standards, developers caution it could stifle innovation, reduce wallet diversity and limit user choice on the Play Store.
Neutral
Imposing licensing requirements and compliance checks may raise development costs and temporarily reduce the availability of some wallet apps, but it does not directly affect cryptocurrency fundamentals or token value. In the short term, stricter App Store rules could hinder trading convenience and slow market access; however, in the long run, standardized regulations may enhance user trust and drive broader adoption. On balance, the net impact on crypto prices is expected to be neutral.