Google Play Store Mandates Gov Licenses for Crypto Wallets in 15 Jurisdictions

Google Play Store has introduced a new policy requiring developers of cryptocurrency wallet apps to obtain government licenses in 15 jurisdictions, including the United States, the United Kingdom, and the European Union. This policy applies to both custodial and non-custodial wallet developers, regardless of whether they hold user funds [1]. The move comes amid growing mainstream adoption of digital assets, with Bitcoin hitting a record high of $123,000 in August 2025 [1].

Cryptocurrency wallets function as tools for managing cryptographic keys rather than storing digital assets directly. When users send cryptocurrency, their wallet uses a private key to digitally sign a transaction, which is then broadcast to the blockchain network for verification [1]. While custodial wallets are operated by companies that control private keys on their servers, non-custodial wallets store these keys locally on users’ devices [1]. The distinction has significant regulatory implications, as custodial wallet providers are treated more like traditional financial institutions due to their control over user assets.

Google’s new licensing policy treats both types of wallets equally, requiring developers to comply with stringent regulatory frameworks. In the U.S., this means registering with FinCEN as Money Services Businesses and obtaining state money transmitter licenses—requirements traditionally applied to entities that transmit funds on behalf of customers [1]. In the EU, developers must obtain CASP (Crypto Asset Service Provider) authorization under the Markets in Crypto-Assets (MiCA) regulation, which is typically reserved for crypto exchanges and custodial services [1]. In the U.K., registration with the Financial Conduct Authority is required [1].

However, the policy goes beyond current legal standards for non-custodial wallets. Under U.S. regulations, non-custodial wallet providers are not classified as money transmitters [1]. Similarly, MiCA licenses are not intended for software that merely helps users manage their own keys [1]. Journalist L0la L33tz noted that the policy “goes well beyond what is required of non-custodial wallets by law,” adding that the compliance costs could be prohibitive for smaller developers [1].

The financial burden of these requirements is considerable. Obtaining money transmitter licenses across U.S. states can cost hundreds of thousands of dollars and require maintaining substantial cash reserves [1]. MiCA compliance also demands extensive regulatory programs typically reserved for large financial institutions. As a result, the policy may favor larger companies with robust compliance capabilities over smaller, innovative developers.

Google’s dominance in the Android ecosystem amplifies the impact of this policy. With 70% of smartphones globally running on Android and the Play Store as the primary app distribution platform, Google has significant control over which cryptocurrency tools are accessible to mainstream users [1]. This has led to concerns about “regulation by commercial enforcement,” where platform policies exceed legal requirements and effectively shape the regulatory landscape without legislative changes [1].

The policy also appears influenced by the Financial Action Task Force’s 2021 guidance suggesting that developers of decentralized apps might be considered Virtual Asset Service Providers if they maintain control over user interfaces [1]. Although this guidance is not legally binding, Google has implemented it as a mandatory requirement.

As institutional adoption of digital assets grows and stablecoins gain traction in international payments, the policy could influence how users access crypto tools. It may push users toward custodial services or browser-based interfaces, which come with different risk profiles.

Google’s approach highlights how platform gatekeepers can implement de facto regulations through private policy changes, shaping the financial technology ecosystem without legislative input [1]. This precedent could extend to other privacy-focused or crypto-related applications in the future, depending on how developers, users, and regulators respond to this convergence of platform control and fintech regulation.

Source: [1] Forbes - [https://www.forbes.com/sites/boazsobrado/2025/08/13/google-play-store-requires-government-licenses-for-crypto-wallet-apps/](https://www.forbes.com/sites/boazsobrado/2025/08/13/google-play-store-requires-government-licenses-for-crypto-wallet-apps/)