Google Revises Play Store Crypto Wallet Policy Exempting Non-Custodial Options

Google has issued a revised clarification regarding its Google Play Store policy on cryptocurrency wallets, specifically confirming that non-custodial wallets are no longer subject to the same licensing and compliance requirements as custodial wallets. This development follows earlier restrictions that had caused widespread uncertainty among developers and users, particularly in 15 jurisdictions where the policy applied [1]. The initial interpretation of the rules suggested that all crypto wallet developers, regardless of custodial status, would need to obtain licenses, prompting concern over potential barriers to entry for self-sovereign wallet tools [2].

The updated policy now clearly distinguishes between custodial and non-custodial wallets, exempting the latter from the compliance framework. This distinction is critical, as non-custodial wallets allow users to maintain full control over their private keys and digital assets without third-party intermediaries. Developers have welcomed the clarification, noting that it reduces regulatory burdens and supports innovation in the self-custody space [2].

According to the updated guidelines, Google remains committed to compliance with anti-money laundering (AML) requirements where fiat currency is involved. However, these obligations do not apply to non-custodial wallets in the same way they do to custodial services. This nuanced approach reflects a broader shift in how tech platforms and regulators are beginning to understand the unique features of decentralized applications [1].

Industry analysts have observed that Google’s policy reversal aligns with ongoing discussions around regulatory frameworks for blockchain and decentralized finance (DeFi). By distinguishing between custody models, the company appears to be responding to concerns from developers and users who rely on non-custodial solutions for their decentralized nature [2]. The change is particularly significant in the European Union, where the previous policy had been interpreted as a de facto ban on non-custodial wallet developers [4].

The revised stance also suggests that major tech firms are adapting their policies in response to evolving regulatory landscapes. While Google has not fully removed compliance requirements, it has provided a more flexible framework that better accommodates the operational realities of non-custodial wallet providers [1]. This shift may encourage further development of crypto tools on the Google Play platform, particularly in regions where user demand for self-custody remains high.

Developers are now advised to consult the updated Google Play Help Center for detailed guidance on the new policy. The move underscores Google’s broader commitment to fostering a secure yet innovative digital ecosystem while addressing the unique challenges posed by cryptocurrency [1].

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[1] Google clarifies non-custodial wallets not part of recent ban... (https://www.mitrade.com/insights/news/live-news/article-3-1037484-20250814)

[2] Why Did Google Change Its Crypto Wallet Policy? (https://www.onesafe.io/blog/future-of-crypto-wallets-googles-policy-reversal)

[3] DeFi Education Fund and a16z Push for Safe Harbor in ... (https://coincentral.com/defi-education-fund-and-a16z-push-for-safe-harbor-in-blockchain-apps/)

[4] Google reverses course on non-custodial crypto wallet ban ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1037423-20250814)