- Google Play mandates licenses for crypto apps by 2025, affecting major markets.
- Non-custodial wallets remain exempt after industry feedback.
- Regulatory compliance pressures small developers and major exchanges.
Google Play Store will require crypto exchanges and custodial wallet apps to obtain regulatory licenses for publishing by October 29, 2025. Non-custodial wallets are exempt following industry feedback.
The new policy could create barriers for smaller crypto developers, while potentially impacting market operations and driving innovations in decentralized solutions amid regulatory constraints.
Google Play Store has announced a new policy requiring crypto exchanges and custodial wallet apps to obtain regulatory licenses by October 29, 2025. This policy aims to align with global regulatory standards following extensive industry discussions.
Major regions affected include the United States, EU, UK, and Japan. Regulatory bodies such as FinCEN and the FCA will oversee compliance. The crypto community, including major developers, has expressed concerns about potential barriers for smaller teams.
The policy could cause financial strain, especially for smaller developers facing high license costs. Larger entities like Coinbase and Binance are already compliant in most regions but may encounter increased oversight in new jurisdictions.
In the financial markets, custodial wallet and exchange tokens such as BNB and CRO might be directly impacted, particularly as they seek compliance across different regions. Non-custodial wallets now face fewer immediate hurdles but may still experience market fluctuations.
Industry experts agree that while regulatory compliance is necessary, it could drive users towards decentralized solutions if non-custodial options are restricted. Arthur Hayes, Co-Founder of BitMEX, stated,
Regulatory choke points inevitably drive users toward decentralized solutions. If Google Play blocks non-custodial wallets, users will simply move elsewhere.
Historical trends indicate potential dips in Total Value Locked (TVL) in DeFi protocols during regulatory changes. Developers remain focused on Web3 integrations, with movements towards non-custodial or web-based solutions until apps meet compliance requirements.
