The Google Play Store has announced a new policy for cryptocurrency wallet developers, requiring licenses in 15 regions including the US and European Union.
Requirements in the US
In the US, developers are required to register as a Money Service Business (MSB) with FinCEN and hold a state money transmitter license or operate as a federal/state bank. MSB registration carries stringent compliance requirements, including AML (Anti-Money Laundering), CTF (Counter-Terrorist Financing), and KYC (Know Your Customer). This goes beyond the legal requirements for non-custodial wallets, which are not considered money transmission services under current legislation.
Requirements in the EU
In the EU, developers are required to hold a Crypto Asset Service Provider (CASP) license under the MiCA (Markets in Crypto-Assets) regulation. MiCA licenses are typically granted to exchanges, trading platforms, and digital asset custodians. This makes it virtually impossible to obtain a license for a simple non-custodial software wallet.
Market Impact and Conclusion
The new policy doesn't distinguish between custodial and non-custodial wallets. Experts say this could force most non-custodial wallet developers out of the Google Play Store, restrict open-source software innovation, and impose AML/KYC requirements on all non-custodial wallets built into Android devices. Google states that this step aims to 'provide a safe and compatible ecosystem for users.'
Overall, the new requirements from the Google Play Store may significantly affect the cryptocurrency wallet market, impacting both developers and users.
