Google Play’s Crypto Rules: More Licenses, Less Fun! 😱

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Law and Ledger is your go-to source for all things crypto law, brought to you by Kelman Law – A law firm obsessed with digital assets.

The following editorial was written by Alex Forehand and Michael Handelsman for Kelman.Law.

Google Play’s New Crypto Rules: A Wild Ride

Well folks, Google Play has dropped a bombshell this week. If you’re into crypto exchanges or custodial wallets, brace yourself: you’ll need a fancy financial license to keep your app on the Play Store in over 15 major markets. 😲 The U.S., U.K., EU, Japan-basically the entire world-has been caught in the net. No, seriously. If you’re targeting those markets, it’s compliance time!

Google’s message is crystal clear: if your app exchanges crypto or holds users’ funds, you better be legally licensed to do so. Don’t have the proper paperwork? Well, say goodbye to your Google Play access and hello to a potential nightmare. For some apps, this may feel like trying to fit a giraffe into a toy car. 🚗🐪

Regulatory Headaches? Google’s Got Your Back (Sort of)

So here’s the lowdown: in the U.S., custodial wallets and exchanges are required to either:

  • Register with FinCEN as a Money Services Business (MSB), and get your state-level Money Transmitter Licenses (MTLs), or
  • Partner up with a federal or state-chartered banking entity. Easy, right? 😂

And don’t think it’s a walk in the park with those old-school financial institutions. You’ll be knee-deep in Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, the kind that banks love but crypto apps… not so much. 🏦

Over in the European Union, it’s even worse. You’ll need a Crypto‑Asset Service Provider (CASP) license, thanks to the MiCA rules. The U.K.? Same deal, just register with the Financial Conduct Authority (FCA) and hope for the best. Other markets have their own complex regulations-good luck keeping track! 😩

On the bright side, apps that target markets outside these regulated regions are free to skip the paperwork. Go ahead and take your chances! 😜

Non-Custodial Wallets: Google Says “Whoops!”

When Google first announced the rules, people freaked out, thinking even non-custodial (self-custody) wallets might be hit with the licensing requirement. Cue the alarms! 🚨 Was Google going full Big Brother on decentralized tech? Not quite. After some strong feedback (shoutout to Jack Dorsey), Google clarified via X (formerly Twitter) that non-custodial wallets are exempt. Phew, right? 🙌

So, if you’re using or building self-custody wallets, breathe easy. No one’s taking them off the Play Store-yet. 🧘‍♂️

This win for decentralization is a victory, not just for techies, but for those who believe in the power of freedom and privacy. A happy ending-finally! 🎉

The Custodial Wallets and Exchange Providers: Pack Your Bags… for Paperwork!

If you’re running a custodial wallet or centralized exchange, don’t just sit there hoping this will blow over. You’ll need to figure out your licensing for FinCEN, state MTLs, MiCA, FCA, and all that jazz. 🔍

At Kelman PLLC, we’re experts at helping crypto exchanges and custodial wallets navigate the bureaucratic jungle. Let us help you survive this regulatory safari. Need advice? Click here for a free consultation. 🦁

This article originally appeared at Kelman.law.

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2025-08-16 15:04