tl;dr
Google will update its Play Store policy this fall, requiring custodial digital wallet apps to obtain jurisdiction-specific licenses before distribution in markets like the EU, UK, and US. Non-custodial wallets are exempt from these rules. Enforcement begins October 29. The update caused concern amo...
Google announced it will update its Play Store policy for software wallets this fall, triggering initial worries among digital-asset users that self-custodial wallets on Android devices might be sidelined. The new requirements will mandate that custodial digital wallet apps, such as those operated by exchanges, obtain jurisdiction-specific licenses—like MiCA authorization in the EU, FCA registration in the U.K., and FinCEN registration in the U.S.—before they can be distributed in those markets. Transitional arrangements will apply in France and Germany.
However, Google clarified that non-custodial wallets fall outside the scope of the updated Cryptocurrency Exchanges and Software Wallets policy, easing fears for crypto holders who manage their own wallets. Enforcement of these country-specific regulations will begin on October 29, according to Google's recent blog post.
The clarification came after a backlash on Crypto Twitter, where users worried the guidelines might target self-custodial wallet apps on Android—which comprise a significant portion of the market but often lack formal registration with regulators. Android's dominance, powering over 70% of all mobile phones worldwide, underscores the importance of this policy update.
Jacob Wittman, general counsel at the Plasma Foundation, downplayed the issue, describing the Google Play wallet policy as a "nothing burger." He noted that while the policy change might appear minor, it highlights the significant influence tech giants hold over app distribution, reminding users they remain subject to the platforms' control and discretion.