Google has modified its policy, exempting non-custodial crypto wallets from the need to obtain federal licenses in the US and EU, which simplifies conditions for developers.
Policy Update from Google
As of August 14, 2025, Google is reversing its requirement for all crypto wallets in its app store to obtain licenses. The new policy exempts non-custodial wallets, which do not store user funds or private keys, from mandatory licensing.
Impact on Market and Developers
Initially, the new policy caused dissatisfaction and confusion among developers who feared the removal of their apps from Google Play. Market participants expressed concerns about the costs of compliance with the new requirements, potentially affecting crypto wallets supporting major cryptocurrencies like BTC and ETH. The swift policy reversal reassured the crypto community, alleviating fears of market disruptions.
Prospects for Non-Custodial Wallets
The exemption for non-custodial wallets is expected to encourage innovation in this space. Developers can focus on improving the functionality of their wallets without regulatory hurdles, particularly in US and EU markets. While custodial wallet providers must adhere to new jurisdictional rules, such as FinCEN registration, the development of non-custodial solutions will proceed without serious restrictions.
Thus, the changes in Google's policy have created a more favorable environment for non-custodial wallets, which may enhance the advancement of technologies in this sector.
