Google Play's new rules require licenses for custodial crypto wallets, sparing non-custodial ones.
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Google Play’s New Crypto Wallet Policy: What You Need to Know
Google Play is set to implement a significant policy change for crypto wallet applications starting October 29, 2023. This update mandates that custodial crypto wallet apps across more than 15 jurisdictions, including the United States and the European Union, adhere to specific licensing requirements. However, non-custodial wallets will remain unaffected by these changes.
Licensing Requirements Across Jurisdictions
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Under the new policy, developers of custodial crypto wallets in the United States must register as either a money services business or a money transmitter with local regulators. This involves compliance with the Financial Crimes Enforcement Network (FinCEN) requirements, including the implementation of a comprehensive Anti-Money Laundering (AML) program. Such measures are likely to increase the adoption of Know Your Customer (KYC) protocols and other security checks within the industry.
In the European Union, developers will need to register as crypto-asset service providers (CASPs) to comply with the updated Google Play Store policy. These requirements are designed to align with broader industry standards and enhance the security and legitimacy of crypto transactions.
Google’s Position on Non-Custodial Wallets
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Following community feedback and concerns regarding the policy’s impact, Google has clarified that non-custodial wallets are not subject to these new regulations. This distinction is crucial for developers and users who prefer non-custodial solutions, which allow users to maintain direct control over their private keys and funds.
In a statement addressing the crypto community’s concerns, Google emphasized that its Cryptocurrency Exchanges and Software Wallets Policy does not encompass non-custodial wallets. The company is updating its Help Center to reflect this clarification, ensuring transparency and understanding among developers and users alike.
A History of Crypto App Regulations
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Google Play’s relationship with the cryptocurrency industry has been complex. In recent years, the platform has taken a cautious approach, banning crypto mining apps in 2018 and removing several crypto-related applications, including news apps from Cointelegraph and Coindesk, in 2020. Despite these challenges, Google Play has shown a willingness to adapt, as evidenced by its 2023 announcement permitting non-fungible token (NFT) games, provided developers disclose these features and exclude gambling elements.
For developers and users navigating the evolving landscape of crypto regulations, understanding these policy changes is essential. By staying informed and compliant, stakeholders can continue to innovate within the crypto space while adhering to necessary legal frameworks.
For more details on the updated policy and its implications, visit Google’s official [developer policy page](https://support.google.com/googleplay/android-developer/answer/16329703) here.
Sophia is a pioneer in the world of Web3 and NFT ecosystems. With extensive experience in digital art and tokenomics, she breaks down the intricate relationships between creativity and blockchain technology. Her unique perspective bridges the gap between technology and culture.
