Google has introduced stricter listing requirements for cryptocurrency wallet apps on its Play Store, mandating that custodial wallet providers secure official financial licenses before their apps can go live.
The policy covers 15 major jurisdictions, including the U.S. and European Union, and is aimed at creating what Google calls a “safer, compliant ecosystem” for users.
What It Means for U.S. Developers
In the United States, custodial wallet publishers must now register as Money Services Businesses with FinCEN and obtain at least one state-level money transmitter license. Alternatively, they can operate under a federal or state banking charter.
The new rules align with – and in some cases exceed – existing legal obligations, requiring adherence to strict anti-money laundering (AML), counter-terrorism financing (CTF), and know-your-customer (KYC) standards.
Europe’s MiCA Requirements Come Into Play
For the EU market, developers must be licensed as Crypto Asset Service Providers under the Markets in Crypto-Assets (MiCA) framework. This regulatory status is generally required for exchanges, custodians, and other key crypto service providers, and is designed to meet international standards set by the Financial Action Task Force.
Potential Impact on the Wallet Market
Non-custodial wallets – which do not hold user funds – remain unaffected. However, the move could significantly limit the availability of custodial wallets on the Play Store, particularly if other major app marketplaces adopt similar rules. Developers unable or unwilling to meet licensing requirements may be forced to distribute their apps through smaller, less prominent platforms, potentially reshaping global access to custodial crypto services.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/google-play-policy-change-targets-licensed-crypto-service-providers/