Google on Wednesday walked back language in an updated Google Play policy that briefly appeared to require developers of non-custodial cryptocurrency wallets to secure banking-style licences, a move the industry warned would amount to an effective ban in major markets
Google on Wednesday walked back language in an updated Google Play policy that briefly appeared to require developers of non-custodial cryptocurrency wallets to secure banking-style licences, a move the industry warned would amount to an effective ban in major markets.
An article from tech outlet The Rage and a revised support page showed that, in 15 jurisdictions including the United States and the European Union, wallet apps would need either FinCEN Money Services Business and state money-transmitter registration or, in Europe, authorisation as a Crypto-Asset Service Provider under MiCA. Because non-custodial wallets do not hold customer funds, developers argued they cannot meet those obligations.
The guidance sparked swift criticism from digital-asset firms and high-profile figures such as Block co-founder Jack Dorsey, who said the requirements would stifle open-source wallets and push users to riskier distribution channels.
Within hours, Google issued a clarification, stating that “non-custodial wallets are not in scope of Google Play’s Cryptocurrency Exchanges and Software Wallets Policy.” The company said the licensing demands apply only to custodial exchanges and wallets that manage users’ assets, and that self-custody applications may remain in the store without additional approvals.
While the reversal eases immediate concerns, the episode highlights the power large platforms wield over crypto distribution and the continuing uncertainty developers face as regulators—and now app stores—refine rules for digital-asset services.
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