Revised Google Play Guidelines for Cryptocurrency Wallet Applications
Google Play has updated its rules for crypto wallet apps, exempting non-custodial wallets from stringent licensing requirements that apply to custodial wallets.
Under the new rules, custodial wallet developers must obtain licenses such as FinCEN MSB registration in the U.S., state money transmitter licenses, or MiCA licenses in the EU to operate on the Play Store. These licenses are necessary to comply with extensive regulations including Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.
On the other hand, non-custodial wallets are exempt from these licensing requirements. In these wallets, users retain full control of their private keys and funds, unlike custodial wallets that hold and control users' funds. As a result, non-custodial wallets can continue to be distributed on Google Play without the need for such licenses.
The clarification came after initial confusion and backlash. Google's initial announcement suggested that both custodial and non-custodial wallets would face the same licensing obligations, sparking concerns in the crypto community. However, Google later clarified that non-custodial wallets are excluded from these strict licensing policies.
The updated policy applies to apps on the Google Play Store in over 15 jurisdictions, including the U.S., Europe, the U.K., and Canada. The deadline for compliance is October 29, 2025. Custodial wallet developers must secure the appropriate licenses to keep their apps on the Play Store by then, while non-custodial wallet developers are not required to take such steps.
This distinction preserves non-custodial wallets' role as user-controlled crypto tools free from the financial regulatory burden imposed on custodial services. Google has updated its Help Center to make this clarification clear.
Notably, Jack Dorsey, co-founder of Block, was among those who criticized the initial policy. The information in this article is from the Unchained Daily newsletter.
In the revised Google Play rules for crypto wallet apps, non-custodial wallets are exempt from the stringent licensing requirements that apply to custodial wallets in the business sector. This is because users retain full control of their private keys and funds in non-custodial wallets, thereby avoiding the financial regulatory burden imposed on custodial services in the field of technology.
