Play Store Policy U-Turn: Google Confirms No Ban on Non-Custodial Crypto Wallets

Google has clarified it will not block non-custodial cryptocurrency wallets from its Play Store, easing fears sparked by new licensing rules set to take effect in October.

Initial Concerns Over Policy Change

Google Play Store recently introduced updated licensing requirements for cryptocurrency wallet apps in 15 countries, including the United States and the European Union. The policy, effective October 29, mandates that developers secure relevant registrations, such as FinCEN Money Services Business (MSB) status in the U.S. or MiCA licensing in the EU, regardless of whether the wallet is custodial or non-custodial.

The announcement alarmed developers, as non-custodial wallets, which allow users to retain full control of their private keys, have historically been exempt from such regulatory obligations. Under the new rules, they appeared subject to the same licensing burdens as custodial platforms, potentially forcing many independent projects off the Play Store.

Clarification Following Backlash

Following widespread concern from the crypto community, Google clarified via X (formerly Twitter) that non-custodial wallets are not covered under the Play Store’s “Cryptocurrency Exchanges and Software Wallets Policy.” The company stated it would update its Help Center to reflect this exemption.

This reversal alleviated concerns that Android users in the U.S., UK, and EU would lose access to popular self-custody tools due to regulatory licensing requirements that non-custodial wallet developers cannot meet.

Impact of New Licensing Requirements

While non-custodial wallets have been spared from the immediate licensing mandate, custodial wallet providers face significant compliance demands. In the U.S., developers must register with FinCEN as MSBs, hold state-level money transmitter licenses, or operate as banks. This includes implementing anti-money laundering programs and potentially adding Know Your Customer (KYC) checks.

In the EU, Google Play will only list wallet apps from MiCA-licensed Crypto Asset Service Providers — a category that explicitly excludes non-custodial wallets. MiCA defines CASPs primarily as exchanges and custodial service operators, leaving independent software wallets outside the licensing scope.

Broader Industry Context

Google’s stance reflects a growing alignment with global financial watchdogs like the Financial Action Task Force (FATF), which in 2021 urged member nations to regulate virtual asset service providers under risk-based frameworks. Although FATF’s guidelines are non-binding, tech platforms have increasingly acted as enforcers by controlling access to distribution channels.

Google has a complicated history with cryptocurrency-related apps, having banned mining software in 2018, removed several crypto news apps in 2020, and blocked deceptive crypto services in 2021. More recently, it allowed NFT games under strict disclosure rules while prohibiting gambling elements.

The clarification on non-custodial wallets underscores the ongoing tension between regulatory compliance, platform policy, and user access to decentralized financial tools.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice