Google Play Store has announced a different policy which makes it compulsory for cryptocurrency wallets to acquire official licenses for their financial services. This is a requirement that needs to be satisfied by the developers before they can publish their apps.
The update affects non-custodial and custodial wallets. It applies to 15 jurisdictions, including the United States and the European Union.
Google Play Store Licensing Rules Threaten Non-Custodial Wallets in Key Markets
According to a Google announcement, the measure by its Play Store aims to create a safer, compliant ecosystem for users. Developers in these regions must now meet specific licensing standards that go far beyond existing legal requirements for many wallet types.
In the United States, the Google play store rule states that developers must register with the Financial Crimes Enforcement Network as a Money Services Business (MSB). They must also be registered with at least one state as a money transmitter. Alternatively, they must be a federal or state-chartered bank entity. A recent U.S. Senate draft bill outlines proposed market structure rules that could further influence licensing standards.
MSB registration requires adherence to strict Anti-Money Laundering, Counter-Terrorist Financing, and Know Your Customer procedures. These obligations, while standard for custodial financial institutions, are not required by law for non-custodial wallets under FinCEN’s 2019 guidance.
That guidance distinguishes hosted wallets (which hold user funds) and unhosted wallets, which do not. The Google play store policy imposes the same licensing requirement on all wallet apps regardless of custody model.
Google’s EU Crypto Wallet Policy Could Reshape Global Access to Non-Custodial Wallets
In the European Union, the Google play store policy demands that developers be authorized as a Crypto Asset Service Provider (CASP). This authorization falls under the Markets in Crypto-Assets (MiCA) regulation.
MiCA licensing applies to entities such as crypto exchanges, trading platforms, and custodial service providers. Simple non-custodial wallets are not eligible for CASP status, meaning independent developers cannot meet the licensing standard.
This leaves only licensed CASPs as those that can list their wallet software on the Play Store in the EU. The approach reflects elements of the Financial Action Task Force’s (FATF) 2021 guidance on virtual assets and service providers.
This didn’t create any significant difference between custodial and non-custodial services. The policy may be a pivotal point in the regulation of cryptocurrency services. If Google play store competitors set comparable regulations, the distribution of non-custodial wallets could be restricted to smaller app stores.
Crypto investor Nic Carter explained that the fresh ban on non-custodial wallets by Google Play Store is not a part of Operation Chokepoint. Carter argues that the move signifies bad policy decisions by Google.
google banning noncustodial wallets is not “chokepoint”. it’s just google having a bad policy.
— nic carter (@nic__carter) August 13, 2025
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
✓ Share: