Google Play Store has implemented new rules for crypto exchanges and wallets, requiring compliance with local regulatory frameworks across various jurisdictions aimed at enhancing legal resilience and consumer protection.
New Requirements for Crypto Exchanges
According to the announcement, crypto exchanges and wallets must adhere to local laws before being published on the Google Play Store. However, publication on the platform is allowed in jurisdictions without specific regulations.
Regional Licensing Specifications
Google Play Store requires crypto exchanges and wallets in the U.S. to register with FinCEN as a Money Services Business and with states as a money transmitter. Entities in the U.K. must register with the Financial Conduct Authority (FCA). In the European Union, registration under the Markets in Crypto-Assets (MiCA) regulations is expected. Compliance with local requirements is necessary for other impacted nations, including Thailand, UAE, Switzerland, South Korea, the Philippines, Japan, Israel, Indonesia, South Africa, Hong Kong, Canada, and Bahrain.
Impact on the Crypto Market
Google Play Store serves as a major gateway for mainstream adoption of web3 products. However, the platform has also facilitated crypto phishing scams, where applications impersonated popular DeFi protocols. Google has taken measures to combat rampant scams, including legal actions. The recent policy for crypto asset applications will play a vital role in reducing phishing scams, especially given the ongoing mainstream adoption of digital assets by institutional investors.
The tightening of publishing rules in Google Play Store may significantly impact the crypto market, providing enhanced user protection and establishing stricter conditions for crypto exchanges and wallets.
