Google Play Store Bans Wallets That Don't Have Banking License
11 days ago
- #Non-Custodial Wallets
- #Cryptocurrency Regulation
- #Google Play Store
- Google Play Store now requires FinCEN registration, state banking license, or MiCA license for non-custodial wallets.
- The policy applies to 15 jurisdictions, including the EU and US, targeting both custodial and non-custodial wallets.
- In the US, wallet developers must register as Money Services Businesses (MSBs), enforcing AML/KYC on non-custodial wallets.
- FinCEN’s 2019 guidance distinguishes custodial and non-custodial wallets, but Google’s policy goes beyond legal requirements.
- In the EU, developers must obtain a MiCA license, effectively banning non-custodial wallets from the Play Store.
- MiCA licenses are for Crypto Asset Service Providers (CASPs), excluding simple non-custodial wallet developers.
- Google’s policy aligns with FATF’s 2021 guidance, blurring lines between custodial and non-custodial software.
- FATF suggests non-custodial front-end services could qualify as Virtual Asset Service Providers (VASPs).
- The policy represents 'regulation by commercial enforcement,' imposing custodial rules on non-custodial wallets via monopoly power.