Google Drops Licensing Policy for Non-Custodial Crypto Wallets

- Google reverses its decision to mandate licensing for non-custodial cryptocurrency wallets. - Policy retraction follows substantial backlash from the crypto community over regulatory concerns. On August 13, 2025, Cryptopolitan reported that Google reversed a controversial policy that would have required developers of non-custodial cryptocurrency wallets to obtain financial services licenses in multiple jurisdictions to publish their apps on the Play Store. The company withdrew the decision after facing significant criticism from the cryptocurrency industry and legal experts. Google’s original proposal would have required developers of all crypto wallets, including non-custodial ones, to comply with complex regulations in the United States and the European Union (EU). In the U.S., developers would have needed to register as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) and obtain state-level money transmission licenses. In the EU, they would have had to secure a Crypto Asset Service Provider (CASP) license under the Markets in Crypto-Assets (MiCA) regulation. The proposal sparked immediate opposition from the crypto community, where legal experts and advocates argued that such licensing requirements do not legally apply to non-custodial wallets under current U.S. and EU laws. They explained that these wallets empower users to manage their funds directly without intermediaries and warned that the policy would place undue compliance burdens on independent developers, stifling innovation in decentralized finance (DeFi) and the broader cryptocurrency sector. In response to the backlash, Google clarified its position, stating that non-custodial wallets are not within the scope of its Cryptocurrency Exchanges and Software Wallets Policy. In addition, Google committed to updating its Help Center to explicitly distinguish between custodial and non-custodial wallets, a change that will ensure its compliance expectations align with established regulatory frameworks. According to Cryptopolitan, industry leaders consider this development a testament to the crypto sector's growing influence in shaping the policies of major technology firms.