Google Play Reassures: Non-Custodial Crypto Wallets Safe Under New Policy

News of Google Play’s policy update initially rattled parts of the cryptocurrency scene. Word spread that the platform was preparing to shut out unregistered non-custodial wallets in several countries, sparking alarm among users. The concern was short-lived, however, as Google took to X to explain the assumption was wrong.

Google Tightens Rules for Licensed Crypto Wallets and Exchanges

Google announced in a recent blog update that from late October, new rules will take effect in more than 15 countries, including the United States and European Union nations.

Under the update, custodial wallet operators must secure the appropriate licenses and follow recognized industry practices to remain listed on Google Play in the affected regions. However, non-custodial wallets remain outside the scope of these rules.

According to Google’s statement, the aim is to ensure that cryptocurrency-related apps meet legal and industry standards in each market where they operate. The company stated that cryptocurrency exchanges and wallet applications would only be permitted in specific jurisdictions if they comply with relevant regulations.

Regional Compliance Requirements

In the European Union, developers will need to register as a crypto-asset service provider with the appropriate national authority, in line with the Markets in Crypto-Assets (MiCA) framework. They must also observe any additional rules imposed by individual EU member states, even where those requirements go beyond MiCA’s provisions.

In the United States, two main compliance pathways are available. “The developer must be either (a) registered with FinCEN as a Money Services Business and with a state as a money transmitter or (b) a federal or state chartered bank entity.“

Google has also set new requirements for developers in the United Kingdom and several other countries.

Google Clarifies Policy After Industry Backlash

The announcement initially led to speculation that non-custodial wallets would be targeted, prompting pushback from technology and cryptocurrency figures. Jack Dorsey, co-founder of Twitter (now X), voiced his criticism, describing the update as “terrible” for the sector.

In response, Google reiterated that the changes do not apply to non-custodial wallets. The company confirmed that these applications fall outside the reach of its policy for cryptocurrency exchanges and wallet software on Google Play.

A History of Tightening Rules for Crypto Apps

Google Play’s handling of cryptocurrency apps has included a mix of bans and removals over the years.

• In 2018 Google Play banned apps that mined cryptocurrency on devices.
• The year 2020 brought tighter enforcement as the store removed the Bitcoin Blast game from its official listings on Google Play.
• Eight crypto apps were blocked in 2021 after Google Play said they misled users into paying for a fake cloud mining service.
• Google Play now closely reviews exchange software wallets, tokenized asset distribution apps, and NFT-based gaming content.

The latest policy adjustment reinforces Google Play’s position that compliance with national regulations is essential for custodial crypto services operating on its platform. Providers in affected jurisdictions will be expected to demonstrate proper licensing and adherence to recognized practices before being approved for listing.