Starting October 29, 2025, Google Play will mandate that all crypto exchange apps and custodial wallets obtain the necessary financial licenses to remain available in over 15 key jurisdictions, including the United States, European Union, UK, Canada, Japan, and more. The policy requires developers of custodial services, which hold user funds, to register as Money Services Businesses with FinCEN and secure state-level money transmitter licenses in the U.S., or become licensed Crypto‑Asset Service Providers (CASPs) under the EU’s MiCA framework. Similar local authorizations are required elsewhere.
Importantly, non‑custodial wallets—where users maintain full control of their private keys—are explicitly exempt from this licensing requirement. This distinction was made clear following industry backlash and will be updated in Google’s Help Center to avoid discouraging use of decentralized wallet solutions.
The updated policy reflects Google’s alignment with global AML/KYC compliance standards and aims to enhance consumer protection in regulated markets. However, it poses compliance challenges for smaller custodial wallet developers, potentially accelerating market centralization around licensed providers.
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#FinCENMSB
#MiCACASPLicense
#AMLCompliance
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#CryptoRegulation2025
