Google Play has announced new rules for cryptocurrency wallet providers that will take effect on October 29. These changes only apply to custodial wallets and require licensing in over 15 jurisdictions.
New Regulations for Crypto Services
Under the updated rules, developers of crypto services in the US must register with local regulators as money services businesses or money transmitters. Meanwhile, EU-based firms must secure registration as crypto-asset service providers (CASP). In the US, firms registered with the Financial Crimes Enforcement Network (FinCEN) are subject to strict obligations, including implementing a written Anti-Money Laundering (AML) program. These requirements may lead to expanded Know Your Customer (KYC) checks and other compliance measures across the industry.
Google's Response to Criticism
In response to criticism from the crypto community, Google clarified via X that non-custodial wallets remain outside the scope of its Cryptocurrency Exchanges and Software Wallets Policy. The company also stated it is updating its Help Center to reflect this exemption.
History of Google Play and the Crypto Industry
Google Play's relationship with the crypto sector has been turbulent. In 2018, the platform banned crypto mining apps; in 2020, it removed the Bitcoin Blast game and delisted crypto news apps without explanation. In 2021, Google barred eight so-called 'deceptive' crypto apps, accusing them of tricking users into paying for fraudulent cloud services. In 2023, Google shifted course slightly, allowing non-fungible token (NFT) games under certain conditions.
The new measures from Google Play are part of an expanded policy for oversight in the crypto industry, indicating a higher level of compliance and accountability for cryptocurrency services.
