Google Play Store has rolled out a new policy that puts crypto wallet apps under tighter scrutiny. In 15 major regions, including the United States and the European Union, wallet apps must now show proof of a government-issued license before they can stay listed.
The rules apply to both custodial apps that hold user funds and software wallets that offer storage and transfer features.
Google Tightens Rules for Crypto Wallets in Play Store
Google Play Store has introduced stricter regulations for crypto exchanges and wallets, mandating compliance with local laws in select jurisdictions to enhance consumer protection and curb scams.
The policy, announced today, requires apps in regions like the United States, United Kingdom, and European Union to meet specific licensing requirements.
In the U.S., crypto apps must register with FinCEN as Money Service Businesses and with states as money transmitters. In the U.K., registration with the Financial Conduct Authority is mandatory, while EU-based apps must comply with the Markets in Crypto-Assets (MiCA) regulations and local requirements.
Other affected nations include Thailand, UAE, Switzerland, South Korea, Philippines, Japan, Israel, Indonesia, South Africa, Hong Kong, Canada, and Bahrain. Jurisdictions without specific crypto regulations are exempt, allowing broader app publication.
The move addresses rising concerns over phishing scams on the platform, with cybercriminals impersonating DeFi protocols like PancakeSwap and SushiSwap, as reported by cybersecurity experts.
Google’s prior efforts, including legal action, have aimed to mitigate such fraud, but the new policy seeks to strengthen safeguards amid growing institutional adoption of digital assets.
Crypto app developers in regulated markets will need to secure licenses to maintain or gain access to Google Play Store’s vast user base, a key driver of web3 adoption.
Getting Licensed Is a Tall Order
This is not a box you can just tick. In the U.S., developers need to register as a Money Services Business with FinCEN or have a banking license at the state or federal level.
In the EU, apps must be officially recognized under MiCA as Crypto-Asset Service Providers. In practice, that means handling compliance, legal oversight, and reporting duties more in line with traditional financial services than open-source tech tools.
Google Sparks Panic With a Misstep
When the policy first dropped, the language suggested that even non-custodial wallets might need to go through licensing. That set off alarm bells across crypto Twitter and developer circles. These types of wallets are built so users can control their keys, with no middleman involved. After some heated pushback, Google clarified that non-custodial apps are safe for now and won’t need licensing.
Indie Developers Take the Hit
That clarification came too late for many smaller developers, who now have to decide whether to invest serious time and money into compliance. Registering as an MSB is a complex process, with requirements for anti-money laundering protocols and identity verification. For solo developers or small teams, this may mean their apps vanish from Google Play unless they pivot or get acquired.
Centralization Fears Return
This is where the decentralization crowd gets nervous. With rules like these, the fear is that the only apps left on major platforms will be the ones backed by corporations or venture funding. Projects that start as grassroots or open-source may never reach mobile users unless they can afford legal teams and licensing fees. The gatekeeping effect is real and hard to ignore.
Google’s Role Goes Beyond App Hosting
There’s a larger debate here. Should platforms like Google have this much influence over which crypto tools people can access? Especially when those same platforms are facing antitrust scrutiny in other sectors. What starts as a policy update becomes a conversation about who controls the future of crypto access on mobile.
Relief for Non-Custodial Tools, For Now
Thankfully, apps that let users hold their own keys are in the clear. That’s a big win for the segment of the crypto world that values privacy and autonomy. It also signals that Google is at least willing to listen and adjust when its policies hit a nerve.
Big Names Stay Comfortable
Large custodial wallet providers like Coinbase, Kraken, and Binance are already well-licensed and unlikely to be affected. It is the smaller players who will feel the heat. Some will fold, others will look for workarounds like direct downloads or browser-based versions.
What Happens Next
Expect fewer wallet apps in some regions and more attention paid to compliance in mobile crypto tools. Developers may need to change how they deliver apps altogether. Users will have to think harder about who built the wallet they are using and whether it meets local rules. What started as a quiet policy update has quickly become a test of crypto’s resilience on mobile platforms.
