📱 Google Play’s Crypto Wallet Crackdown — Open-Source Devs in the Crosshairs

New licensing rules in 15 regions could lock non-custodial wallets out of Android’s biggest app store.

📊 Policy at a Glance

• Regions affected: 15 (including US + EU)
• US rules: Must be a Money Service Business (MSB) + state money transmitter license or bank charter
• EU rules: Must hold a CASP license under MiCA
• Impact: Non-custodial wallets risk exclusion, open-source projects under threat
• Effective: Immediate rollout to all new app submissions

🚨 The Core Change

Google Play now treats all crypto wallet apps — custodial or not — as regulated money services in 15 regions. That means full licensing obligations, including AML/KYC compliance, before an app can hit the store.

Historically, non-custodial wallets — where users hold their own private keys — weren’t considered money transmitters. This shift erases that line completely.

🧨 Why Devs Are Mad

• Barrier to entry: Small teams and open-source contributors can’t afford complex licensing.
• Innovation freeze: Experimental wallet projects will think twice before building for Android.
• Centralization risk: Pushes more crypto activity into corporate-controlled, custodial services.

📉 Potential Fallout for Users

If non-custodial wallets disappear from Google Play:

• Fewer privacy-first options
• More reliance on custodial wallets = higher seizure/hack risk
• Wallet installs could shift to APK sideloading or alternative app stores (Huawei AppGallery, F-Droid, etc.)

“This policy treats permissionless tech like a bank — it’s a fundamental misunderstanding of what makes crypto valuable.” — Privacy advocate, speaking to ATH.live

🔮 What’s Next

• Pushback incoming: Expect lobbying from wallet providers + digital rights groups.
• Workarounds: Some devs may go fully decentralized with self-hosted APK delivery.
• Policy ripple: Apple could follow with similar rules for the App Store.

TL;DR

• Google Play now requires full financial licenses for all crypto wallet apps in 15 regions.
• Non-custodial wallets — the backbone of self-custody — could vanish from the store.
• Devs predict an exodus to alternative distribution channels.