Google Play Blocks Crypto Wallets Without Banking Licenses

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Google Play Store has rolled out new rules that will block most cryptocurrency wallet apps unless their developers have official banking or money service licenses.

The policy applies to 15 regions, including the United States, European Union, United Kingdom, Canada, and Japan. Both custodial and non-custodial wallet developers must now follow local licensing laws before their apps can be listed.

In the U.S., wallet providers must register as a Money Services Business (MSB) with FinCEN, get state money transmitter licenses, or operate as licensed banks. This includes non-custodial wallets, even though a 2019 FinCEN report said unhosted wallets are not money transmitters.

In the EU, developers need approval as a Crypto-Asset Service Provider (CASP) under the MiCA framework. Similar licensing applies in other countries, including the UK and Japan.

Critics say the rules create impossible demands for non-custodial wallet developers, forcing many to remove their apps. Licensing and compliance costs are high, which could slow innovation and reduce access to privacy-focused tools.

Google says the update is meant to “provide a safe and compliant environment” as regulations evolve. However, by treating all wallet types the same, the policy could push out smaller developers and give more control to large licensed companies.

The rules take effect immediately for new apps, while existing ones must comply or be removed from the Play Store.

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