Google Play Store bans crypto wallets in 15 jurisdictions, requires new licensing compliance
Play Store introduced licensing requirements for cryptocurrency wallet applications across 15 jurisdictions, including the US and the EU.
According to a report by the Rage, developers must obtain regulatory approvals before publishing apps on the platform.
Furthermore, the policy requires software wallet developers to comply with local financial regulations “to ensure a safe and compliant ecosystem for users.”
The requirements apply to both custodial and non-custodial wallets, creating compliance burdens that many developers cannot meet.
In the US, developers must register with FinCEN as a Money Services Business (MSB) and obtain state money transmitter licenses, or operate as federally or state-chartered banking entities.
MSB registration requires adherence to strict Anti-Money Laundering, Counter Terrorist Financing, and Know Your Customer frameworks.
Policy exceeds legal requirements
The report noted that Google’s requirements extend beyond current legal obligations for non-custodial wallets.
FinCEN’s 2019 guidance on Convertible Virtual Currencies distinguishes between “hosted” custodial and “unhosted” non-custodial wallets, explicitly stating that non-custodial wallets do not qualify as money transmitters under existing regulations.
The compliance programs required of MSBs represent the highest cost burden for financial institutions and would effectively exclude most non-custodial wallet developers from the Play Store.
The policy forces AML and KYC requirements on all non-custodial wallets available through standard Google devices.
Industry criticism mounts
Consensys lawyer Bill Hughes highlighted the policy inconsistencies on August 1, noting that Google announced the updated policy on July 10 without clearly defining “software wallet” terminology.
Hughes observed that registering as an MSB is “something FinCEN has specifically and clearly not required” for non-custodial wallets.
He added:
“They don’t define the term and do not acknowledge that registering as an MSB is something FinCEN has specifically and clearly not required.”
He noted Google’s broader statement that cryptocurrency activities “should be conducted through certified services in regulated jurisdictions,” despite certification not being legally required.
Hughes characterized the situation as “a bit of a mess” and warned that “the final boss for crypto is now more likely to be the Big Tech platforms that still dictate the major crypto app distribution channels.”
Justin Slaughter, vice president of regulatory affairs at Paradigm, criticized the policy as particularly problematic given Google’s ongoing antitrust litigation.
He said:
“Surprising move here by Google, especially amid their antitrust litigation, to suddenly place draconian restrictions on persons making non-custodial wallets available on the App Store.”
Slaughter referenced pending congressional legislation, noting that “pure coding should not require a federal license” as outlined in draft bills addressing cryptocurrency regulation.
The post Google Play Store bans crypto wallets in 15 jurisdictions, requires new licensing compliance appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI trading cools down and storage chip competition intensifies, Korean stocks plunge over 5%, marking a second consecutive day of sharp decline; SK Hynix drops nearly 8%
On Tuesday, the Korea Composite Stock Index (KOSPI) dropped by as much as 5.1%, triggering the Sidecar circuit breaker mechanism on the exchange and suspending programmatic sell orders for five minutes. Both Samsung Electronics and SK Hynix fell more than 6%, marking five consecutive days of decline. Japan's SoftBank Group plunged over 8%, while AI industry-related stocks such as Tokyo Electron and Advantest also dropped by more than 5%.
Wall Street giants' financial reports tonight: With stock prices trapped in technical correction, even a 20% profit increase can hardly ease triple anxiety
Shares of major US banks hovered in a technical correction zone on Tuesday as the earnings season kicked off, with long-term borrowing costs rising to their highest levels in decades. This has heightened market attention on bank executives’ assessments of US consumer health and credit prospects.
UBS Earnings Season Preview: Strong Momentum from AI Spending, Favoring Lam Research (LRCX.US) and Texas Instruments (TXN.US), Remaining Cautious on Western Digital (WDC.US)
Lam Research (LRCX.US), Texas Instruments (TXN.US), and Western Digital (WDC.US) are set to release their quarterly earnings reports in the coming days. UBS believes that, with continued high spending on artificial intelligence, all three companies are likely to benefit from this trend.
Deutsche Bank (DB.US) upgrades AST (ASTS.US) rating: Has the SpaceX (SPCX.US) spectrum acquisition triggered an unjust sell-off?
Deutsche Bank has upgraded AST SpaceMobile to a "Buy" rating with a target price of $93. Despite stock price volatility triggered by SpaceX's spectrum acquisition, analysts believe that the cooperation potential with T-Mobile and government orders constitute core support. The recent short-term pullback may present a good opportunity to build positions.
Crypto prices
More
