Google Play has announced new requirements for cryptocurrency wallet apps that will come into effect on October 29. These changes are expected to impact the distribution of apps in key markets.
New Requirements for Developers
Under the new rules, wallet app developers targeting U.S. users must register with the Financial Crimes Enforcement Network (FinCEN) as a money services business and obtain state-level money transmitter licenses unless they are already federally or state-chartered banks. In the European Union, authorization as a crypto-asset service provider (CASP) under the new MiCA framework will be required.
Comparison with Apple’s Measures
Apple has long required wallet and exchange apps to be submitted by licensed providers and prohibits mining apps. With Google’s shift, the licensing expectations of the two dominant mobile ecosystems are now largely aligned.
Impact on Developers and Users
With the policy update, users in the U.S. and EU may find fewer crypto wallet options available, but with more stringent regulations. This could lead to improved consumer protections; however, it may also restrict choices in an industry built on decentralization. Developers may face pressure to partner with licensed entities or retreat from certain markets.
This move by Google Play reflects a broader trend towards increased regulation within the cryptocurrency space. The introduction of these requirements is expected to have long-term implications for both developers and users of crypto wallets.
