- Google Policy Update Exempts Non-Custodial Wallets from Licensing.
- Custodial wallets face federal licensing hurdles.
- Clarification provides relief to developers and investors.
Google has reversed its policy requiring all crypto wallets to hold federal licenses in the US and EU as of August 14, 2025, freeing non-custodial wallets from restrictions.
This reversal addresses industry confusion, affirming that non-custodial wallets can remain on Google Play, impacting market stability and easing compliance burdens for developers.
Google Inc. initially announced a policy demanding all crypto wallets on its Play Store to obtain federal or pan-European licenses. This caused widespread confusion and backlash within the industry, leading to a recent policy clarification on non-custodial wallets.
After substantial industry confusion, Google’s Play Store policy team clarified that only custodial crypto wallets will need licenses. Non-custodial options, which do not store user funds or private keys, are exempt from these requirements.
The initial policy raised concerns among developers over potential app delistings. Market actors were apprehensive about the costly compliance, impacting crypto wallets supporting major cryptocurrencies, including BTC and ETH.
Financially, the swift policy reversal reassured the crypto community, mitigating fears of market disruption. This move aligns with legal understandings around non-custodial wallets’ exemption from licensing, following historical precedents like FinCEN’s 2019 guidance.
The exemption is expected to support innovation in the non-custodial crypto wallet space. Developers can focus on enhancing wallet functionalities without facing regulatory burdens, particularly in the US and EU markets.
Technological progress is anticipated in non-custodial offerings, which remain free from federal restrictions. As the October 2025 rollout approaches, custodial wallet providers must comply with updated jurisdictional rules including FinCEN registration.
“Thanks for flagging this. Non-custodial wallets are not in scope of Google Play’s Cryptocurrency Exchanges and Software Wallets Policy. We are updating the Help Center to make this clear.” — Google Official X Account, Official Spokesperson, Google Inc.
