Google is tightening its oversight of cryptocurrency applications in the Play Store, introducing licensing standards that could create significant barriers for custodial wallet providers.
The updated rules, quietly added to Google’s developer policy pages in early August, affect crypto wallet and exchange apps in key markets such as the United States, European Union, Japan, and South Korea. The tech giant says the changes aim to maintain “a safe and compliant ecosystem for users,” but critics argue the move risks pushing some developers out of mainstream app distribution entirely.
Strict licensing requirements
Under the new framework, custodial wallet providers in the U.S. must register as a Money Services Business with FinCEN and hold at least one state money transmitter license — or be a federally or state-chartered bank. In the EU, apps must be licensed under the Markets in Crypto-Assets (MiCA) regulation.
Initially, the lack of clarity on whether these requirements extended to non-custodial wallets sparked strong criticism from crypto advocates. SEAL 911’s @pcaversaccio called the rules “insane legal requirements” and warned they could drive users toward riskier, unofficial app downloads.
Bill Hughes of Consensys, the company behind MetaMask, noted that Big Tech platforms now act as major gatekeepers for crypto apps — without an obligation to be “fair, consistent, or transparent.”
Following the backlash, Google confirmed that non-custodial wallets are not subject to the new policy.
Compliance and global impact
The requirements will push custodial wallet operators toward stricter identity verification, anti-money laundering checks, and transaction record-keeping in the U.S., with similar obligations under MiCA in Europe. France and Germany’s temporary rules will expire in 2026 and 2025, after which full MiCA compliance will be mandatory.
Google’s approach aligns with the Financial Action Task Force’s 2021 recommendations on virtual asset service providers, which many countries adopt to remain in good standing in global financial markets.
While developers can still release apps in jurisdictions outside the licensing list, the inclusion of most major crypto markets means few will be able to reach a global audience without meeting these heightened standards.
