Google Forces Crypto Wallets to Get Banking Licenses for Google Play Store

Google has introduced a new policy requiring all crypto wallet applications on the Google Play Store in the U.S. and the European Union to obtain federal or equivalent banking licenses, including registration with the U.S. Financial Crimes Enforcement Network (FinCEN) or compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation [1]. This applies to both custodial and non-custodial wallets, despite previous legal exemptions for non-custodial platforms under FinCEN’s 2019 guidance [1].

The policy, which goes beyond existing legal requirements, raises significant compliance costs for developers, particularly for early-stage and community-driven projects that may lack the resources to meet these new standards [1]. As a result, many popular crypto wallets could face removal from the Play Store, limiting their visibility and access for users in these regions. Developers may shift to alternative distribution methods, such as sideloading or using non-Google app stores, to bypass these restrictions [1].

The regulatory shift reflects a broader trend toward tighter oversight of the crypto industry, especially in the U.S. and EU. Google’s updated policies align with evolving anti-money laundering (AML) and know-your-customer (KYC) frameworks and signal a growing expectation for crypto platforms to operate within traditional financial systems [1]. This aligns with legislative efforts such as the U.S. GENIUS Act, which aims to ensure stablecoin issuers are not unfairly excluded from licensing [2].

From a market perspective, the new requirements may enhance user trust in the legitimacy and security of crypto wallets available through Google Play. However, they also highlight the tension between regulatory compliance and the decentralized nature of blockchain technology. The increased cost and complexity of obtaining licenses could act as a barrier to entry for smaller developers, potentially leading to market consolidation in favor of larger firms with the necessary resources [1].

The enforcement of these rules also emphasizes the growing influence of global financial regulators in shaping the future of digital assets. As the industry matures, regulatory clarity becomes increasingly important for institutional adoption and market stability. Google’s policy change represents a pivotal moment in the integration of crypto wallets into established financial frameworks [1].

Source:

[1] https://bitcoinworld.co.in/google-play-crypto-wallet-rules/

[2] https://www.forbes.com/sites/jasonbrett/2025/08/12/genius-act-vs-fed-policy-on-stablecoins-raises-questions-for-ethereum/