tl;dr
Google Play Store now requires cryptocurrency wallet apps in 15 regions, including the US and EU, to obtain regulatory approvals before publishing. Developers must comply with local financial laws, including MSB registration and licensing in the US, enforcing AML, CTF, and KYC standards. Google's po...
Google Play Store has introduced new licensing requirements for cryptocurrency wallet applications in 15 jurisdictions, including the US and the EU. Developers must now secure regulatory approvals before publishing their apps on the platform. This mandate applies to both custodial and non-custodial wallets, requiring compliance with local financial regulations to ensure a safe user ecosystem.
In the US, this means developers must register with FinCEN as Money Services Businesses (MSBs) and obtain relevant state money transmitter licenses or operate as federally or state-chartered banking entities. MSB registration enforces strict Anti-Money Laundering (AML), Counter Terrorist Financing (CTF), and Know Your Customer (KYC) frameworks, placing substantial compliance burdens on developers.
Critically, Google’s policy exceeds existing legal requirements, especially for non-custodial wallets. According to FinCEN's 2019 guidance, non-custodial wallets do not qualify as money transmitters under current regulations. However, Google’s policy imposes MSB-level compliance on all crypto wallet apps, effectively excluding many non-custodial wallet developers from the Play Store.
The industry has voiced strong criticism. Consensys lawyer Bill Hughes pointed out the lack of clarity in Google's definition of “software wallet” and highlighted that MSB registration is not legally required for non-custodial wallets. Hughes also remarked on Google's insistence that crypto activities be conducted through certified services, a requirement not mandated by law, calling the situation “a bit of a mess.”
Justin Slaughter of Paradigm condemned the policy as especially problematic amid Google’s antitrust scrutiny, arguing that coding activities should not necessitate federal licensing as pending legislation proposes. This move by Google may signal a shift where major tech platforms become the ultimate gatekeepers for crypto app distribution, challenging the decentralized ethos of the industry.