Google Play Store Cracks Down: Crypto Wallets Banned in 15 Regions Amid Licensing Crackdown

Google just dropped the hammer on crypto wallets—banning them outright in 15 jurisdictions. No warnings, no grace periods—just compliance or removal.

Here’s the kicker: developers now need licenses to operate. Miss the paperwork? Say goodbye to your app’s visibility overnight.

Another day, another hurdle for crypto—because who needs decentralization when you’ve got bureaucracy, right?

Policy exceeds legal requirements

The report noted that Google’s requirements extend beyond current legal obligations for non-custodial wallets. 

FinCEN’s 2019 guidance on Convertible VIRTUAL Currencies distinguishes between “hosted” custodial and “unhosted” non-custodial wallets, explicitly stating that non-custodial wallets do not qualify as money transmitters under existing regulations.

The compliance programs required of MSBs represent the highest cost burden for financial institutions and WOULD effectively exclude most non-custodial wallet developers from the Play Store. 

The policy forces AML and KYC requirements on all non-custodial wallets available through standard Google devices.

Industry criticism mounts

Consensys lawyer Bill Hughesthe policy inconsistencies on August 1, noting that Google announced the updated policy on July 10 without clearly defining “software wallet” terminology. 

Hughes observed that registering as an MSB is “something FinCEN has specifically and clearly not required” for non-custodial wallets.

He added:

He noted Google’s broader statement that cryptocurrency activities “should be conducted through certified services in regulated jurisdictions,” despite certification not being legally required.

Hughes characterized the situation as “a bit of a mess” and warned that “the final boss for crypto is now more likely to be the Big Tech platforms that still dictate the major crypto app distribution channels.”

Justin Slaughter, vice president of regulatory affairs at Paradigm,the policy as particularly problematic given Google’s ongoing antitrust litigation. 

He said:

Slaughter referenced pending congressional legislation, noting that “pure coding should not require a federal license” as outlined in draft bills addressing cryptocurrency regulation.