Google Exempts Non-Custodial Crypto Wallets From New Play Store Rules

Google has updated its Google Play Store policy to exempt non-custodial cryptocurrency wallets from new licensing and regulatory requirements, a move that clarifies earlier confusion and calms concerns from the crypto community. The updated policy, set to take effect on October 29, 2025, requires custodial wallet providers—those that hold users’ private keys—to comply with financial licensing standards in over 15 jurisdictions, including the United States, the European Union, and the United Kingdom. Developers in these regions must either secure a banking charter or register with relevant regulatory bodies such as the Financial Crimes Enforcement Network (FinCEN) or the European Union’s Markets in Crypto-Assets (MiCA) framework [1][2].

Initially, the announcement led to widespread concern within the crypto space, as some interpretations suggested that non-custodial wallets would also be subject to the new rules. This caused swift backlash from developers, legal experts, and industry figures, prompting Google to issue a clarification via its official X account on August 13, 2025 [3]. The company confirmed that non-custodial wallets—those where users maintain full control over their private keys—remain outside the scope of the policy [4]. The Play Store’s Help Center has since been updated to reflect this distinction [6].

The revised policy reflects a broader alignment with local financial regulations in key markets. For example, in the U.S., custodial wallet providers must either hold a state or federal banking charter or register with FinCEN as a money services business. In the EU, they must hold a MiCA-compliant crypto-asset service provider (CASP) license. Transitional periods are also being applied in countries such as France and Germany ahead of the full implementation of MiCA [5].

Despite the clarity, some ambiguities persist. Developers have raised questions about whether non-custodial wallets that offer optional integrations with regulated exchanges—such as fiat on-ramps—could still be classified as custodial for regulatory purposes. These gray areas highlight the challenges of applying traditional financial regulations to decentralized applications [7].

Enforcement of the policy has also faced inconsistencies. Manna Wallet, a self-custodial app, was reportedly de-listed from the Play Store without prior notice, while visibility of the app varied across devices and regions. During the period of uncertainty, positive user reviews were also removed [8].

This policy shift underscores Google’s evolving relationship with the crypto industry. While the company has historically imposed restrictions on crypto-related apps, including outright bans on crypto mining and the removal of crypto news and gaming apps, it has recently shown a more nuanced approach. For instance, in 2023, Google allowed non-fungible token (NFT) games on the platform under specific conditions. The current policy, however, marks a more significant step toward regulatory alignment [6].

For custodial wallet providers, the October 29 enforcement date means they must now ensure compliance with the relevant regulatory frameworks in the jurisdictions where they operate. This could involve a complex and time-consuming process of securing licenses and adjusting operational structures to meet compliance standards [5].

The policy also reinforces the distinction between custodial and non-custodial models for users. Those who prefer self-custody now have clearer assurance that their wallet choices remain unburdened by the same compliance requirements as custodial alternatives [9].

As the policy takes shape, it reflects the broader intersection of regulation and decentralized technology. While Google’s approach appears to balance compliance with industry feedback, it also highlights the ongoing tension between centralized platforms and the decentralized ethos of the crypto space [4].