Google Play Tightens Crypto Wallet Regulations, Mandates Federal Licenses in 15 Jurisdictions

Google Play Store has introduced a stringent new policy requiring cryptocurrency wallet developers to obtain federal licenses before listing their applications. The rule applies to 15 key jurisdictions, including the EU and the US, and enforces specific regulatory frameworks for participation.

In the US, developers must now register as Money Services Businesses (MSBs) with FinCEN, complying with rigorous AML, CTF, and KYC protocols. This poses a significant challenge for non-custodial wallet providers, who traditionally haven't been classified as money transmitters under FinCEN's 2019 guidance.

The policy's expansive compliance requirements threaten to push many non-custodial wallets off the platform, potentially stifling innovation and limiting user access to decentralized finance tools. Industry observers warn the financial burden of compliance may prove prohibitive for smaller developers.