Google Play Bans Crypto Wallets Without Licenses in 15 Key Markets

Google Play Store has imposed stricter licensing requirements on cryptocurrency wallet and exchange applications, effectively banning those that fail to meet financial regulatory standards in 15 key jurisdictions [1]. These jurisdictions include the United States, European Union, United Kingdom, Canada, Japan, and others, where local financial authorities mandate compliance with anti-money laundering (AML), counter-terrorist financing (CTF), and know-your-customer (KYC) regulations [2]. The policy, effective as of August 2025, requires developers to hold valid banking or money service licenses before their apps can be listed on the platform [3].

In the U.S., developers must register as a money services business (MSB) with FinCEN and obtain state money transmitter licenses or function as a licensed bank. Similarly, in the EU, compliance with the Markets in Crypto-Assets (MiCA) regime and registration as a crypto-asset service provider (CASP) is mandatory [4]. These requirements apply to both custodial and non-custodial wallet developers, despite arguments that non-custodial wallets—particularly unhosted wallets—should not be subject to the same regulatory burdens as traditional financial institutions [5].

Critics argue the policy imposes “unmeetable burdens” on smaller developers, especially those in open-source or decentralized finance (DeFi) ecosystems [6]. Compliance with licensing requirements can be prohibitively expensive, potentially stifling innovation and limiting access to privacy-preserving tools. As a result, several wallet providers have reportedly chosen to delist their apps from Google Play rather than comply [7].

The enforcement of these rules marks a broader shift in how major app distribution platforms are aligning with global regulatory frameworks. While this could enhance user safety and financial compliance, it also raises concerns about the future of decentralized innovation, particularly in markets where decentralized platforms lack the infrastructure to obtain the necessary regulatory approvals [8]. Developers not already operating under financial licenses now face difficult choices: acquire costly licenses or abandon distribution on one of the largest app marketplaces in the world [9].

Source:

[1] https://cryptobriefing.com/google-play-ban-non-custodial-wallets-licenses/

[2] https://www.therage.co/google-play-store-ban-wallets/

[3] https://cryptoslate.com/google-play-store-bans-crypto-wallets-in-15-jurisdictions-requires-new-licensing-compliance/

[4] https://coincentral.com/google-blocks-non-custodial-crypto-wallets-from-play-store-in-major-regulatory-shift/

[5] https://www.ainvest.com/news/google-play-store-mandates-gov-licenses-crypto-wallets-15-jurisdictions-2508/

[6] https://bloomingbit.io/en/feed/news/94812

[7] https://www.cryptotimes.io/2025/08/14/google-play-bans-crypto-wallets-without-banking-licenses/

[8] https://www.ainvest.com/news/google-cracks-crypto-apps-strict-licensing-requirements-eu-2508/

[9] https://crypto.news/google-plays-new-crypto-rules-could-lock-defi-apps-out-of-major-markets/