Google Play has introduced a new policy requiring crypto wallet app developers to hold banking or money service licenses in 15 major jurisdictions, including the U.S., EU, UK, Canada, and Japan. The rule applies to both custodial and non-custodial wallets, contradicting FinCEN’s 2019 guidance that unhosted wallets are not money transmitters.
In the U.S., wallet issuers must register as MSBs with FinCEN and obtain state licenses or operate as licensed banks. EU developers must be authorized under MiCA, while similar requirements exist in the UK and Japan. Critics argue the policy imposes “unmeetable burdens” on small and open-source projects, stifling privacy-focused innovation and limiting the wallet market to large, licensed players.
Google maintains the change will ensure safety and compliance in a rapidly evolving regulatory landscape. The policy takes immediate effect for new submissions, while existing apps must comply or risk removal from the Play Store.
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