Google has tightened its grip on the crypto sector, introducing strict licensing requirements for custodial wallets and cryptocurrency exchanges on the Play Store. Under the updated rules, apps without valid licenses in key jurisdictions will no longer be allowed on the marketplace. This move is aimed at aligning with global financial compliance standards and protecting users from unregulated platforms.
New Compliance Standards Across the Globe
For the United States, developers must be registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business and hold a state license, or operate as a recognized banking institution. In the European Union, companies must be authorized as Crypto-Asset Service Providers (CASPs) under the MiCA regulation.
Google’s updated policy also outlines specific country requirements for apps targeting certain regions:
- UK: Registration with the Financial Conduct Authority (FCA)
- Canada: Registration with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Japan: Registration with the Financial Services Agency
- South Korea: Reporting to the Financial Intelligence Unit as a Virtual Asset Service Provider (VASP)
- UAE: Licensing from respective regional regulators, including Dubai’s Virtual Assets Regulatory Authority (VARA)
- Bahrain: Approval from the Central Bank
- Switzerland: Authorization from the Swiss Financial Market Supervisory Authority (FINMA)
- Hong Kong: Type 1 and Type 7 licenses from the Securities and Futures Commission
- Thailand: Licensing from the Securities and Exchange Commission
- South Africa: Registration with the Financial Sector Conduct Authority
Transitional Periods and Exceptions
Some countries will benefit from temporary transitional rules. For example, France will maintain relaxed licensing until June 30, 2026, and Germany until December 30, 2025. After these deadlines, only MiCA-compliant licenses will be accepted. Apps targeting regions outside Google’s specified list can remain in the Play Store, but must follow local regulations and be ready to prove compliance when requested.
Custodial vs Non-Custodial Wallets
The new policy only applies to custodial wallets and crypto exchanges that hold users’ funds. Non-custodial wallets, where users retain full control of their private keys, are exempt from these restrictions.
Industry Impact and Future Updates
Google has promised updates to its support documentation to prevent confusion among developers. The move follows increasing global pressure to regulate the crypto industry, with South Korea earlier this year forcing Google to block access to 17 unregistered crypto exchanges.
Conclusion
This decisive step by Google marks a new era for crypto app regulation. While it strengthens consumer protection and aligns with global compliance standards, it could also push smaller, unlicensed platforms out of the mainstream app marketplace. For developers, the message is clear: get licensed or get delisted.
