Google Play has updated its licensing requirements for crypto wallet developers, clarifying that non-custodial wallets are not subject to these new rules.
New Requirements for Crypto Wallet Developers
Starting on October 29, Google Play requires crypto wallet app developers in over 15 jurisdictions, including the US and EU, to obtain appropriate licenses and comply with established industry standards. This policy update excludes non-custodial wallets, which do not hold their users’ private keys.
Registration and Compliance Standards
According to the official guidelines, US developers must register with local authorities as either money services businesses (MSB) or money transmitters. Similarly, developers within the European Union are required to register as crypto-asset service providers (CASP), complying with regional financial regulations. In the United States, entities registered with the Financial Crimes Enforcement Network (FinCEN) as MSBs are obligated to implement detailed Anti-Money Laundering (AML) programs.
History of Google Play with Crypto Apps
Google Play’s approach to crypto applications has been cautious and evolving. In 2018, it banned crypto mining applications, and by 2020, it had removed popular games like Bitcoin Blast along with several crypto news apps without detailed explanations. In 2021, Google enforced bans on eight deceptive crypto apps accused of misleading users into paying for fraudulent cloud services. More recently, in 2023, it permitted non-fungible token (NFT) games, with requirements for disclosure of NFT usage and prohibiting gambling features like loot boxes that provide random rewards.
The updated rules from Google Play underscore the importance of compliance with cryptocurrency regulations while ensuring that non-custodial wallets remain exempt from these requirements.
