Google Play Clarifies New Crypto Wallet Rules — Non-Custodial Wallets Remain Unaffected - Coinedict

Google Play is updating its cryptocurrency wallet app policy starting October 29, requiring certain developers to obtain licenses in over 15 jurisdictions, including the United States and the European Union.

The tech giant has confirmed, however, that non-custodial crypto wallets will not be affected by these new rules.

New Licensing Requirements for Custodial Wallets

Under the updated guidelines, custodial crypto wallet apps must comply with local licensing and regulatory standards:

• United States: Developers must register with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB) or a money transmitter. This includes implementing Anti-Money Laundering (AML) programs and potentially adding Know Your Customer (KYC) checks.
• European Union: Providers must register as Crypto-Asset Service Providers (CASPs) under EU regulations.

Google says these steps are intended to ensure compliance with industry standards and enhance user security.

Non-Custodial Wallets Stay Out of Scope

Following pushback from the crypto community on X (formerly Twitter), Google clarified:

“Non-custodial wallets are not in scope of Google Play’s Cryptocurrency Exchanges and Software Wallets Policy. We are updating the Help Center to make this clear.”

Non-custodial wallets allow users to store and manage their crypto without giving control of private keys to a third party, making them fundamentally different from custodial services.

Google Play’s Complicated History with Crypto Apps

This isn’t Google Play’s first crypto-related policy shift:

• 2018 — Banned cryptocurrency mining apps.
• 2020 — Removed the Bitcoin Blast game and several crypto news apps, including Cointelegraph and Coindesk, without explanation.
• 2021 — Blocked eight “deceptive” crypto apps accused of selling fake cloud mining services.
• 2023 — Allowed NFT-based games but required developers to disclose NFT features, banned gambling mechanics, and prohibited “loot boxes.”

Key Takeaways for Developers & Users

• Effective Date: October 29, 2025
• Applies To: Custodial wallet apps in the U.S., EU, and 13+ other regions
• Does Not Apply To: Non-custodial crypto wallets
• Goal: Enhance compliance, security, and trust in crypto applications on Google Play

As the crypto industry continues to grow, tech platforms like Google Play are tightening rules to align with regulatory expectations — while still allowing innovation in non-custodial solutions.