Google Play Store bans crypto wallets in 15 jurisdictions, requires new licensing compliance
Play Store introduced licensing requirements for cryptocurrency wallet applications across 15 jurisdictions, including the US and the EU.
According to a report by the Rage, developers must obtain regulatory approvals before publishing apps on the platform.
Furthermore, the policy requires software wallet developers to comply with local financial regulations “to ensure a safe and compliant ecosystem for users.”
The requirements apply to both custodial and non-custodial wallets, creating compliance burdens that many developers cannot meet.
In the US, developers must register with FinCEN as a Money Services Business (MSB) and obtain state money transmitter licenses, or operate as federally or state-chartered banking entities.
MSB registration requires adherence to strict Anti-Money Laundering, Counter Terrorist Financing, and Know Your Customer frameworks.
Policy exceeds legal requirements
The report noted that Google’s requirements extend beyond current legal obligations for non-custodial wallets.
FinCEN’s 2019 guidance on Convertible Virtual Currencies distinguishes between “hosted” custodial and “unhosted” non-custodial wallets, explicitly stating that non-custodial wallets do not qualify as money transmitters under existing regulations.
The compliance programs required of MSBs represent the highest cost burden for financial institutions and would effectively exclude most non-custodial wallet developers from the Play Store.
The policy forces AML and KYC requirements on all non-custodial wallets available through standard Google devices.
Industry criticism mounts
Consensys lawyer Bill Hughes highlighted the policy inconsistencies on August 1, noting that Google announced the updated policy on July 10 without clearly defining “software wallet” terminology.
Hughes observed that registering as an MSB is “something FinCEN has specifically and clearly not required” for non-custodial wallets.
He added:
“They don’t define the term and do not acknowledge that registering as an MSB is something FinCEN has specifically and clearly not required.”
He noted Google’s broader statement that cryptocurrency activities “should be conducted through certified services in regulated jurisdictions,” despite certification not being legally required.
Hughes characterized the situation as “a bit of a mess” and warned that “the final boss for crypto is now more likely to be the Big Tech platforms that still dictate the major crypto app distribution channels.”
Justin Slaughter, vice president of regulatory affairs at Paradigm, criticized the policy as particularly problematic given Google’s ongoing antitrust litigation.
He said:
“Surprising move here by Google, especially amid their antitrust litigation, to suddenly place draconian restrictions on persons making non-custodial wallets available on the App Store.”
Slaughter referenced pending congressional legislation, noting that “pure coding should not require a federal license” as outlined in draft bills addressing cryptocurrency regulation.
The post Google Play Store bans crypto wallets in 15 jurisdictions, requires new licensing compliance appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CoreWeave Dilemma for Nvidia: Forced to Rescue or Stand By?
As both a shareholder of CoreWeave and its sole GPU supplier, Nvidia now faces a dilemma after the sharp decline in CoreWeave's stock price. If it intervenes, each rescue strengthens expectations of a safety net, raises the threshold for future rescues, and risks getting further entangled in this high-leverage game. If it does not intervene, CoreWeave's liquidity crisis will directly cut off demand for GPU purchases, simultaneously devaluing Nvidia's equity investment and severely damaging its market reputation.
US CPI Heats Up Across the Board, Triggering "Inflation Spiral" Alert; October Rate Hike Odds Once Hit 50%. "New Fed News Agency": Watch Waller's Speech This Week
After the CPI was released, the market-implied rate hike probability first rose to 50% before falling back to 40%. Wall Street generally believes that whether action will be taken in October still depends on how the Federal Reserve assesses inflation trends. "The New Fed News Agency" noted that, unlike in August when price increases were concentrated in certain items, the stronger-than-expected performance of September's core CPI was more broad-based, further reinforcing the case for a December rate hike. The speech by Waller on Friday morning Beijing time is his last public statement before the Fed's blackout period ahead of this month's meeting. Economists are warning about an "inflation spiral," with real purchasing power and midterm election pressures interweaving.
The calm period in the US stock market is over! The S&P 500 ends its record of 53 consecutive trading days without a drop of over 1%. AI stock sell-off intensifies market concerns.
The S&P 500 Index fell by 1.1%, ending a streak of 53 consecutive trading days without a drop of 1% or more. This was the longest period of calm since January 2020.
Federal Reserve Beige Book: U.S. economy expands moderately but inflationary pressures intensify; AI boosts productivity curbing some corporate hiring demand
The latest Beige Book released by the Federal Reserve on Wednesday shows that overall economic activity in the United States continues to grow, but performance varies across regions. Consumer spending remains generally weak, and there has been little change in the labor market.
Crypto prices
More
