Google Enforces Licensing Mandate for Crypto Wallets on Play Store, Impacting Non-Custodial Apps

Google Play has implemented stringent new licensing requirements for cryptocurrency wallet applications across 15 jurisdictions, including the U.S. and EU. The policy shift mandates both custodial and non-custodial wallet developers to obtain regulatory approvals—such as FinCEN MSB registration in the U.S. or MiCA compliance in Europe—or face removal from the platform.

The move effectively bars unlicensed self-custody solutions, creating immediate challenges for developers of decentralized finance tools. U.S.-based projects must now register as Money Services Businesses with FinCEN and secure state-level money transmitter licenses, signaling heightened scrutiny of crypto infrastructure providers.

Market observers note the decision aligns with global regulatory trends but could stifle innovation in wallet technology. The policy arrives as jurisdictions worldwide tighten oversight of digital asset services, with particular focus on consumer protection and anti-money laundering controls.